Addressing illicit financial flows (IFFs) was one of six major financing challenges focused on at a virtual high-level event –Financing for Development in the Era of Covid-19 and Beyond – convened by the UN Secretary-General and the leaders of Canada and Jamaica.
The 28 May event also aimed to galvanise international action to address the challenges of liquidity; boosting external finance to support jobs and growth; debt; private sector credit and ensuring a sustainable recovery from the pandemic.
A collaborative effort to enable discussions on concrete proposals to overcome challenges in the six issue areas was announced at the event.
Proposals to tackle IFFs included enabling a more coordinated approach among governments to tackle tax avoidance, tax crimes and other financial crimes, including by strengthening legal capacity of different governmental bodies to share information with each other.
Also contemplated at the event was the need for increased fiscal transparency, including the publication of public contracts and information on tax and employment incentive measures and their use by businesses.
Participants in the event also discussed inefficient and wasteful tax incentives and the taxation of natural resources to ensure environmental sustainability and strengthening the implementation of beneficial ownership standards.
A new international tax action plan specifically tailored to the needs of developing countries should also be contemplated, alongside a scaling up the Tax Inspectors Without Borders programme.
The event’s discussion note on illicit financial flows can be found here.
Categories: Trade Based Financial crimes News