G20 Development Working Group Submissions slide image

G20 Development Working Group Submissions

DOMESTIC RESOURCE MOBILIZATION (DRM) PILLAR 10 In 2010, G20 members agreed to support developing countries, particularly LICs, to continue strengthening tax regimes and fiscal policies to provide a sustainable revenue base for inclusive growth and social equity, as well as to enhance the transparency and accountability of public finances. The G20's DRM goals in LICs were to: • enhance DRM for development; . promote inclusive growth; and • reduce aid dependency. To achieve these goals, the 2010 Seoul MYAP asked the G20 DWG to take two concrete actions. The first commitment was to support the development of more effective tax systems. Its subsidiary actions included: making recommendations to help developing countries address the key capacity constraints faced in their tax systems; developing a knowledge management platform to support developing country capacity in tax policy and administration systems; and identifying ways to help developing countries tax multinational enterprises (MNEs) fairly through effective transfer pricing regimes. - The second overarching MYAP action aimed to support work to prevent erosion of domestic tax revenues by asking the Global Forum to over the medium-term – enhance its work to counter the erosion of developing countries' tax bases and, in particular, to highlight the relationship between the work on non-cooperative jurisdictions and development. Initial results were to be reported to leaders at the Cannes Summit. The DWG has assessed that this commitment is on-track: concrete steps have been taken, including the Global Forum launching a technical assistance coordination platform in February 2012 to better support developing countries in the areas of transparency and exchange of information. Exchange of information agreements signed between OECD countries and developing countries (2000-12) NUMBER OF AGREEMENTS 1500 1032 953 899 927 842 866 759 812 790 704 730 1280 1239 1182 600 -2000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Saint Petersburg Accountability Report on G20 Development Commitments 62 900 1200 OECD Source: OECD Secretariat Chapter 2 Implementation of G20 Commitments on Development 10 Since 2010, South Africa and Spain have co-facilitated the work under the DRM Pillar. The G20 called for the OECD Task Force on Tax and Development, the UN, IMF, World Bank, the Global Forum on Transparency and Exchange of Information for Tax Purposes and regional tax organizations to contribute to the ongoing work.
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