Cross-border tax avoidance costs developing countries up to 200 USD billion per year. By creating a conducive environment to both licit and illicit fiscal evasion and avoidance trends, spillover effects – defined as the impact one country’s tax practices have on other countries’ abilities to raise domestic revenue – play a significant role. Hence, understanding how one country’s policies affect the fiscal system(s) and development of other countries, especially developing countries, is of paramount importance.
Before the release of a report prepared for the G-20 Summit 2011, which came with the first high-level recommendations to systematically assess cross-border fiscal policy effects, spillover assessments were limited to Double Tax Treaties (DTT) – i.e. examining the impacts of DTTs, signed among developing and industrial countries, on the development of the former. While there are ongoing efforts to close the gap, measuring the impacts of the tax practices of developed countries on the fiscal circumstances of developing countries faces methodological constrains. These efforts include following frameworks designed since then: Spillovers in International Corporate Taxation, by the IMF, and Tax Spillover: A New Framework by SPERI and the APPG on Inclusive Growth. Based on the mentioned initiatives and further knowledge, ActionAid published a Guiding Framework for Undertaking National Tax Spillover Analyses, compiling the key recommendations for EU policy-makers to conduct spillover analysis.
On behalf of ATI Consultative Group 3, the ATI Secretariat cordially invites you to participate in an upcoming webinar presentation on promoting spillover analysis of tax policies. In the webinar, Bart Kosters and Wim Assink (IBFD) will provide first-hand insights into applied methodologies and results of a national spillover analyses previously conducted for the Netherlands. Martin Brehm Christensen (Oxfam Novib), who authored ActionAid’s Guiding Framework for Undertaking National Tax Spillover Analyses, will further present (methodological, content-related, and procedural) design recommendations to be considered when designing such an assessment.
- 14:00 - 14:05 - Welcome and introduction
Coordinator of ATI Consultative Group 3
- 14:05 - 14:35 - Spillover analysis methodologies and their application (practical assessment example)
Bart Kosters, Wim Assink (IBFD)
- 14:35 - 15:00 - Recommendations and considerations for the design of a spillover analysis
Martin Brehm Christensen (Oxfam Novib)
- 15:00 - 15:45 - Open discussion and Q&A
Moderated by the coordinator of ATI Consultative Group 3
The live event will be held via the video conference tool “Microsoft (MS) Teams”. An invitation link will be provided to you by the Secretariat of the ATI. If you have not received a link, but are interested in participating, kindly contact firstname.lastname@example.org.