On 29 April 2024 the Annual Report 2024 of Tax Inspectors Without Borders (TIWB) was published. This joint initiative by the OECD and the UN Development Programme (UNDP) supports developing countries with capacity building programs to improve domestic resource mobilisation.

The report notes that the work of TIWB has resulted in additional tax revenues of USD 2.3 billion in the developing countries involved in the programs, helping to mobilise domestic resources to achieve the sustainable development goals (SDGs). Over the nine years since TIWB began its work a total of 71 programs have been successfully completed across Africa, Asia and the Pacific, Eastern Europe and Latin America and the Caribbean. A further 59 programmes are currently underway. TIWB works by placing technical experts with developing country tax administrations, to give practical assistance in dealing with the tax affairs of multinational enterprises. The work of TIWB is in line with the UNDP goal of working in partnership with countries to build integrated systems that use taxation as an important tool in achieving the 2030 Agenda.

TIWB has also become involved in supporting tax authorities with criminal investigations and with the effective use of the data obtained from the automatic exchange of information with other countries. TIWB is also involved with programs on digitalising tax administrations and with the use of the information obtained from country-by-country reports. Analysis of the data included by multinational enterprises in their country-by-country report can help to detect areas where there may be attempts at profit shifting.

To help countries to address the challenges of collecting value added tax (VAT) in relation to digital trade, TIWB has introduced pilot programmes for the audit of VAT on digital trade that can hep to secure vital revenue. This can also help to ensure there is a level playing field between e-commerce and traditional businesses. TIWB can support the implementation of the international standards on VAT/GST.

The reform of the international tax system proposed by the OECD’s two-pillar solution represents another area for potential TIWB support. The new rules in relation to the global minimum tax are to come into effect for many countries from 2024 onwards and TIWB is well placed to respond to the demand for technical assistance from developing countries.