An Ignored Topic in Development Cooperation?

Effective tax systems are essential in developed and developing countries alike for raising sufficient revenues to finance government spending, public services and social security systems, without engaging in excessive borrowing. In developing countries increased domestic tax revenues can also reduce the dependency on donor funding and other foreign capital flows and strengthen the accountability of governments towards their citizens. The focus of governments in developing countries on aid flows and few large tax payers and the lack of dependence on their own citizens for revenue collection is according to the OECD a major cause of weak, unresponsive governance in developing countries. But how can the multiple domestic and international challenges to establish effective and fair tax systems in developing countries be tackled? Especially the lack of governments’ resources and capacity to build effective tax collection systems, the large share of the informal economy and the dependency on value-added taxes compared to income or wealth related taxes are major impediments.

International tax competition, trade liberalization as well as tax evasion and avoidance by large companies and rich individuals also hamper tax collection efforts in developing countries. Taking into account the importance of domestic resource mobilization in developing countries, the event discusses the main domestic and international challenges for setting up effective and fair tax systems in developing countries. It further identifies policy recommendations at the national and international level with a focus on the role of donors and assesses why developments in this area have been so limited despite being on the agenda since the International Conference on Financing for Development in Monterrey in 2002.

Welcome:
Roswitha Kremser, Austrian Development Agency (ADA)

Presentation:
Ben Dickinson, Head of Tax and Development Program, Organisation for Economic Co-operation and Development (OECD)

Comments:
Elisabeth Gruber, Austrian Federal Ministry of Finance
Martina Neuwirth, Vienna Institute for International Dialogue and Cooperation (VICD) and Member of the Tax Justice Network
Karin Küblböck, Austrian Research Foundation for International Development (ÖFSE)

Moderation:
Cornelia Staritz, Austrian Research Foundation for International Development (ÖFSE)

Date: 11June 2012, 17.30 – 19.30
Place: Alois Wagner Saal, C3 – Centre for International Development, Sensengasse 3, 1090 Vienna

Registration: Ingrid Pumpler, i.pumpler@oefse.at or Phone: +43/1/317 40 10-100

Further Information:

>>> Tax Systems in Developing Countries