Enhancing Tax Transparency and International Tax Cooperation of ADB Developing Member Countries

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Introduction: The knowledge and support technical assistance by the Asian Development Bank (ADB) aims to bolster the capacity of Developing Member Countries (DMCs) in three critical areas: tax transparency, countering tax evasion, and safeguarding against Base Erosion and Profit Shifting (BEPS). These objectives are pivotal in securing essential tax revenue for DMCs, combating tax-related illicit financial flows, and fostering international tax cooperation.Objectives:1.Meeting International Standards: Assist DMCs in aligning with globally recognized tax transparency standards.2.Combatting Tax Evasion: Implement measures to identify and address cross-border tax evasion practices effectively.3.Addressing BEPS: Equip DMCs with strategies to mitigate aggressive tax planning techniques, thus safeguarding their tax bases, including aligning with globally agreed anti-BEPS measures.Approach: The initiative builds upon efforts and achievements of prior ADB technical assistance in capacity building on international tax standards and expands on those achievements to encompass the following strategies:1.Tailored Assistance: Offer targeted support to DMCs seeking aid in implementing international tax standards and measures to fight cross-border tax evasion and are committed to achieving the outlined objectives.2.Regional Training: Conduct workshops, seminars, and conferences to enhance the capacity of tax administrations across DMCs on international tax related topics. 3.Knowledge Sharing: Collaborate with other development partners and peers to produce relevant outreach and training events, fostering a comprehensive understanding of international tax standards and measures to inhibit cross-border tax evasion.4.Integration with APTH: The activities conducted by the RETA will feed into the international tax cooperation (ITC) pillar of the Asia Pacific Tax Hub (APTH) which was officially launched at the 54th ADB Annual Meeting in May 2021.Coverage: The initiative aims to reach all ADBDMCs, providing regional training opportunities and capacity-building activities. These engagements may include regional or subregional conferences, seminars, symposiums, and workshops, facilitating the implementation of international tax standards and ITC across the region.Conclusion: By fostering collaboration, providing targeted assistance, and promoting knowledge sharing, the ADB's Technical Assistance initiative seeks to empower DMCs in achieving tax transparency, combating cross-border tax evasion, and addressing BEPS, thereby enhancing their fiscal stability and promoting economic development.