Global action to fight tax evasion and tax avoidance and stem illicit financial flows (IFFs), is more urgent than ever in the wake of the coronavirus crisis according to a joint blog posted by senior experts at the International Monetary Fund (IMF), United Nations (UN), World Bank Group (WBG) and the Organisation for Economic Co-operation and Development (OECD).

They say the global response must include international tax cooperation in a set of effective and well-coordinated multilateral actions to respond to the crisis.

Expert views

In order to expand the fiscal space, it is more urgent than ever to work together to fight tax evasion and tax avoidance, including IFFs according to the experts.

At the same time, they say it has never been more important to move towards a fairer and more equitable taxation of economic activities at the global level. 

Aggressive tax minimisation

They also reckon that aggressive tax minimisation by large taxpayers – however legal it may appear – will become even more intolerable to society at large.

This increases the importance of, and attention to, the work on international corporate taxation now being carried on.

The joint blog, Facing the crisis: the role of tax in dealing with COVID-19, expressing the views of Vitor Gaspar, Director, Fiscal Affairs Department, IMF; Navid Hanif, Director, Financing for Development Office, UN; Ceyla Pazarbasioglu, Vice President, Equitable Growth, Finance and Institutions, WBG; and Pascal Saint-Amans, Director, Centre for Tax Policy and Administration, OECD can be found here.

Categories: Trade Based Financial crimes News