VAT Conference
About ITD    I    Back to main site 4 Contact Us	Welcome I Program I Participants I Press Release I Conference Documents I Papers & Presentations I Evaluation ABOUT ITD To better discharge their institutions’ mandates, the staffs of the IMF, OECD and World Bank are working to facilitate increased cooperation on tax matters among governments and international organizations by establishing a dialogue to share good practices and pursue common objectives in improving the functioning of national tax systems. 4 Background 4 Purpose 4 Functions Background Developing countries must be able to raise the revenues required to finance the services demanded by their citizens and the infrastructure (physical and social) that will enable them to move out of poverty. Taxation will play the key role in this revenue mobilization. This in turn requires well-designed tax policies that are translated into clear legislation and are administratively feasible. Perhaps the greatest challenge facing these countries is to improve the effectiveness of their tax administrations. In this context, the increasing globalization of the economy is relevant both for developed and developing countries. The constraints that it places on countries’ ability to set and enforce their own taxes are felt increasingly keenly. The list of taxation issues with international relevance is growing rapidly: e.g. the taxation of multinational enterprises; the impact of international tax competition; cross-border VAT and excise issues; the taxation of electronic commerce; and the treatment of mobile labor. This list is by no means exhaustive, and the dialogue on domestically-oriented aspects of tax policy and administration is equally important when considering the need to mobilize revenue for development. It is of course important to recognize that tax remains national in nature and that even within a new framework for international dialogue all countries will insist on maintaining their fiscal sovereignty. The International Tax Dialogue arises out of discussions between interested international organizations concerned with taxation. It involves the development and enhancement of the relations between these international organizations and between national tax authorities. The ITD is consistent with the outcome of the UN Conference on Financing for Development, which stresses the importance of strengthening the revenue-raising capacity of developing countries, and with the crucial role of international organizations in supporting these efforts. The ITD is an initiative for encouraging an international dialogue without creating a new institution and for developing greater coherence between interested international organizations, to the advantage of both developing and developed countries. While the current international tax scene is rich in initiatives and programs, it lacks: Clear and transparent mechanisms for the co-ordination of these programs; and A real input from developing countries in the way programs are constructed and international tax issues debated. Purpose The core purpose of the ITD is to encourage dialogue among governments and international organizations, fostering the sharing of good practices and the pursuit of common objectives in improving the functioning of national tax systems. The main elements of the development of the International Tax Dialogue are: a) Objectives Promote effective international dialogue between participating organisations and governments on taxation, giving all countries a real input into the discussion of tax administration and policy issues; Identify and share good practices in taxation; Provide a clearer focus for technical assistance on tax matters; and Avoid duplication of effort in respect of existing activities on tax matters. b) Scope International and domestic tax policy and administration issues. The International Tax Dialogue (ITD) will not at any stage however have any power to make, enforce or mediate binding tax rules. c) Approach Build on strengths of existing institutions; Coordinate through a Steering Group composed of the representatives of the IMF, OECD, World Bank, and the UN in an observer capacity, with active participation from regional tax administration organizations, regional development banks and, potentially, other interested organizations; and Arrange regular international conferences on issues of common interest in tax policy and administration. Functions of the International Tax Dialogue At the core of the ITD is a Steering Group composed of representatives of the IMF, OECD and World Bank. The Steering Group will: Arrange periodic international meetings of public officials and experts in tax policy and administration experts to discuss issues and activities of common interest and develop a process for deciding on topics, venues, dates and agendas in co-operation with other interested countries and institutions. Facilitate the identification and sharing of good practices in taxation, and discuss possible implementation. Encourage greater co-ordination of bilateral and multilateral technical assistance by collecting and sharing information on bilateral and multilateral programs, leading to greater coherence of technical assistance efforts; and Direct and develop further the inter-active real-time worldwide communications network (the ITDweb).