This 2016 Monitoring Brief on Commitment 3 of the Addis Tax Initiative is the third of three ATI Monitoring Briefs, each of which is concerned with the monitoring of the fulfilment of one of the ATI commitments. The results presented are based on the replies from ATI member countries to the ATI Monitoring Survey. The Monitoring Briefs on Commitments 1 and 2 can be found online.
ATI Commitment 3 is dedicated to ensuring policy coherence for sustainable development, particularly in
the area of domestic revenue mobilisation. Relying on the participation and comments of the ATI member
countries in the ATI Monitoring Survey (14 development partners and 8 partner countries), the 2016 Monitoring Brief on Commitment 3 of the Addis Tax Initiative presents the following key findings:
- Many partner countries and development partners are dedicating considerable attention to international tax cooperation, especially with respect to the OECD/G20 Base Erosion and Profit Shifting (BEPS) project and exchange of information, including additional measures to combat illicit financial flows. Outcomes are already observed.
- The recognition of potential negative spill overs of double taxation agreements on partner countries has led several countries to evaluate existing treaties or to place more emphasis on the overall policy effects when negotiating new agreements.
- Awareness of the impacts of tax incentives has risen. Some countries have even adopted legislative measures to regularly evaluate and reassess tax incentives.
- Debate over the taxation of Official Development Assistance (ODA) has intensified discussions on whether ODA should be exempt from taxation are happening both at an international level as well as within countries.