On 22 October 2018 the OECD and the World Bank produced a joint report on Improving Cooperation between Tax Authorities and Anti-Corruption Authorities in Combating Tax Crime and Corruption. The joint report was launched at the eighteenth International Anti Corruption Conference held in Copenhagen.

The report calls for effective cooperation between tax authorities and anti-corruption authorities on citing tax evasion, bribery and other corruption. The joint study looks at legal, operational and cultural aspects of cooperation by tax authorities with anti-corruption authorities and looks at the experience of 67 countries.

The report notes that government agencies need to join together to deter and detect such crimes to reduce the billions of dollars of revenue losses currently being sustained each year by governments. It suggests that governments should increase the range of gateways for reporting and information sharing, streamlining operational procedures and using mechanisms for enhance cooperation including joint action and taskforces, including identifiable contact points within each agency.

If there is no legal basis for cooperation or if there are undue legal restrictions, such as laws restricting information sharing within government, this is an obstacle to a whole-of-government approach to financial crime. One government agency needs to know the type of information held by the other and officials need training on information sharing gateways. The agencies also need to promote a culture of cooperation at all levels.

There need to be safeguards however to protect the confidentiality of the information held. This requires clear guidelines on who can access information and for what purpose. There must be governance mechanisms to ensure that information is only used for its intended purpose.

Tax examiners and auditors must be able to detect corruption red flags, and corruption investigators must be able to identify indicators of tax crime. The report gives guidance on the actual indicators of corruption that officials may find during their work. These may arise from assessing a person’s external and internal risk environment, transactions, payments, money flows and the outcomes of transactions.

The joint report can help countries to review their approach to cooperation and identify areas where this can be improved. It will be used to support the capacity building work currently undertaken by the OECD and World Bank. The report supports the OECD’s ongoing Oslo dialogue which is promoting inter-agency and international cooperation to combat financial crime.