On 10 July 2020 the Platform for Collaboration on Tax (PCT) published on its website the Progress Report 2020 outlining the tax cooperation between leading international organisations on supporting domestic resource mobilisation and combating the economic effects of COVID-19. The report covers activities carried out by the PCT in the year since June 2019.

The PCT was set up by the OECD, IMF, World Bank and UN to increase cooperation and facilitate consultations on designing and implementing international tax standards. The PCT aims to strengthen capacity building support; assist in developing joint guidance on tax issues; and improve information sharing. The PCT also helps to formulate tax technical advice to developing countries to assist them in pursuing the Sustainable Development Goals.

Supporting good practice

The knowledge and outreach activities of the PCT have supported developing countries in implementing good practices in international taxation. A toolkit has been released in relation to the taxation of offshore indirect transfers and workshops have been held in relation to the toolkit on addressing difficulties in accessing transfer pricing comparable data. Pubic consultations have taken place on transfer pricing documentation and tax treaty negotiations.

MTRS

Another important activity engaged in by the PCT is the Medium-Term Revenue Strategy (MTRS). This strategy aims to support countries in their efforts to increase tax revenues over the medium term by reforming tax systems and taking a whole of government approach. So far 23 countries have been supported by the PCT in formulating or implementing an MTRS.

The MTRS is designed for countries pursuing reform of their tax system to support implementation of the 2030 Agenda for Sustainable Development. The strategy can also support the design of spending plans that implement improved priorities for public spending. The MTRS can also help countries to see further than the short-term annual budget and plan to reach the relevant objectives in an appropriate time frame.

COVID-19 Crisis

To support governments in the health crisis the PCT has facilitated cooperation between the international bodies and has included on its website a COVID-19 resource section. Capacity building has been delivered to developing countries through a virtual environment during the crisis.

PCT Website

The website that was launched earlier this year is a global platform for engaging with tax officials from developing countries and with other stakeholders. The website includes the Online Integrated Platform (OIP) which is a database setting out domestic resource mobilization activities and tax-related projects carried out by PCT partner organizations. Users of the database can find relevant projects and activities by performing a search by country, region or organization to gain information on opportunities for future collaboration.