On 16 February 2018 the Platform for Collaboration on Tax (PCT) released the closing statement following its conference on taxation and the sustainable development goals (SDGs). The PCT was set up by the IMF, OECD, UN and World Bank at the request of the G20 group of countries to ensure effective coordination and implementation of technical assistance programs.

The Addis Ababa Action Agenda noted that much of the greater public financing required to meet the SDGs will need to be generated by domestic resource mobilization. It therefore follows that taxation has an important role in financing the necessary improvements to meet the SDGs. Currently international cooperation on tax has reached unprecedented levels with the implementation of the OECD/G20 project on base erosion and profit shifting (BEPS); the automatic exchange of information; and the strengthening of the UN Committee of Experts on International Cooperation in Tax Matters.  The PCT was formed to enable the Platform partners to bring together their expertise to stimulate research and take a lead in activating the role of taxation in achieving the SDGs.

Strengthening international tax cooperation

The Platform Partners will increase coordination and cooperation at the global and country levels. This will involve supporting developing countries to articulate their views on tax developments as well as giving guidance, for example through the toolkits being developed in relation to high priority areas of international tax.

Building institutions through medium term revenue strategies

In 2016 the Platform Partners produced a report entitled “Enhancing the Effectiveness of External Support in Building Tax Capacity in Developing Countries”. This report suggested that countries should reform their tax systems by means of Medium Term Revenue Strategies (MTRS) that would map out a process for multi-year, realistic plans for tax, legal and administrative reforms. This is currently in the first stage of implementation and the Platform will be involved in the first wave of country programs in 2018. The Platform Partners will work to achieve an inclusive process of information sharing with stronger leadership from the country governments and engagement from societies within the countries.

Promoting partnerships and stakeholder engagement

Partnerships and international support are important in achieving the SDGs including the tax aspects and the Platform is one form of such a partnership. The success of the Platform will depend on the creation of wider relationships involving governments, regional tax organizations, civil society and the business sector. The conference on SDGs and tax is therefore seen as a first step in a process of regular dialogue with all stakeholders.

Actions to be taken by the Platform

To take forward the tax agenda the Platform Partners will help to give a comprehensive summary of the total efforts by international, regional and bilateral partners in supporting developing countries on tax matters. The PCT will aim for high standards of transparency in providing information on capacity development activities and will increase the work of supporting developing countries to approach transparency and BEPS in relation to both domestic law and treaties. The Platform will provide consistent advice on international tax policy.

The PCT will complete the Toolkits that aim to assist developing countries with international tax issues. There will be an expanded outreach program to support the development and use of the Toolkits and recommendations and guidance will be provided.

Other action points arising from the conference include the following:

• An update will be provided to the G20 in mid-2018 on tax certainty and developing countries.
• The Platform will report on spillovers and opportunities from international tax changes as they affect developing countries.
• The organizations will work together to support the development of MTRSs and report on outcomes.
• The Platform will help developing countries access knowledge, experience and best practice in tax administration in cooperation with the Forum on Tax Administration, regional tax organizations and others.
• The Platform will review current practice and provide guidance on the tax treatment of ODA funded goods and services.

The Platform will be establishing a regular dialogue with its stakeholders including the governments of developing countries. Support will also be given to the participation by developing countries in tax policy discussions at an international level. The Platform will be looking for secure donor funding for its expanded work program and will strengthen the Platform Secretariat.

Taxation and the SDGs

A multi-year Tax and SDGs Program is to be launched by the Platform, covering tax, health, education, gender, inequality, environment and infrastructure. Tax structures affect the economy and society much more than just from a financial viewpoint. Taxation impacts issues such as investment and growth; equality; sustainability of the environment, extraction of natural resources and other areas relating to the SDGs. The Platform Partners already work on these issues through standard setting and technical assistance but there is scope for further work.

Further agenda

Taking into account issues raised at the conference the Platform will produce a forward agenda of issues raised and areas where further work is possible by the Platform, or by its partners individually or in collaboration with others.