OECD WORK ON TAXATION 2018-2019. Tax is at the heart of our societies. A well-functioning tax system is the foundation stone of the citizen-state relationship, establishing powerful links based on accountability and responsibility. It is also critical for inclusive growth and for sustainable development, providing governments with the resources to invest in infrastructure, education, health, and social protection systems. Across the whole range of policy issues facing governments today, tax finds itself playing a central role, whether it is about collecting sufficient resources to fund the infrastructure of a society or acting as a policy lever to reflect attitudes and choices about such diverse areas as climate change, gender equality, education, health. The OECD and its Centre for Tax Policy and Administration have worked tirelessly to shepherd these issues and provide a focal point for an inclusive conversation that leads to world class standards and effective implementation, always recognising the full range of contexts and constraints faced by countries. We have achieved great success in tackling tax evasion through the Global Forum on Transparency and Exchange of Information for Tax Purposes (which has more than 150 members) – it is estimated that by June 2018, jurisdictions around the globe have identified EUR 93 billion in additional revenue (tax, interest, penalties) as a result of voluntary compliance mechanisms and other offshore investigations put in place since 2009. Moreover, the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project now has over 115 members in its BEPS Inclusive Framework, all working together to ensure that tax is paid where value is created. In the midst of this great transformation of the international tax environment taxpayers and governments raised the issue of uncertainty in tax matters from the perspective of businesses and tax administrations. In response to the call from G20 Leaders, the OECD and the IMF have produced a report identifying the sources of uncertainty in tax matters. The OECD is working with governments to develop tools to promote greater tax certainty in order to to provide a stable environment that will foster economic growth. These gains, however, need to be cemented and new challenges are emerging that demand even greater emphasis on the collaborative environment we have fostered, whether this is about the digitalisation of the economy, promoting domestic resource mobilisation in developing countries or using tax policy to advance important social goals such as climate change, gender equality or healthier communities. I look forward to our tax work continuing to deliver tangible results, and co-operating with other international and regional organisations to help governments create the resilient, stable and sustainable environment needed for more inclusive growth.
