OECD – Youth and COVID-19: Response, Recovery and Resilience

OECD – Youth and COVID-19: Response, Recovery and Resilience – The COVID-19 global health emergency and its economic and social impacts have disrupted nearly all aspects of life for all groups in society. People of different ages, however, are experiencing its effects in different ways.For young people, and especially for vulnerable youth, the COVID-19 crisis poses considerable risks in the fields of education, employment, mental health and disposable income. Moreover, while youth and future generations will shoulder much of the long-term economic and social consequences of the crisis, their well-being may be superseded by short-term economic and equity considerations. To avoid exacerbating intergenerational inequalities and to involve young people in building societal resilience, governmentsneed to anticipate the impact of mitigation and recovery measures across different age groups, by applying effective governance mechanisms.Based on survey findings from 90 youth organisations from 48 countries, this policy brief outlines practical measures governments can take to design inclusive and fair recovery measures that leave no one behind. 11June2020.

IAT/IOTA/OECD – Tax Administration Responses to COVID-19: Recovery Period Planning. Version 26 May 2020

CIAT/IOTA/OECD – Tax Administration Responses to COVID-19: Recovery Period Planning. Version 26 May 2020. 1.  Recovery from the profound impacts of the COVID-19 pandemic on people’s lives, jobs, businesses and the wider economy is likely to be lengthy, challenging and multifaceted. Tax administrations, which have played a critical role in the crisis period, will also be central to supporting therecovery. Even during the immediate crisis period there is likely to be significant benefit from early business restoration planning to help identify the main challenges and opportunities for both tax administrations and taxpayers and, where possible, to take early preparatory actions. 2. In undertaking business restoration planning, it will be important to take into account the distinguishing features of the COVID-19 pandemic compared to other crises that are likely to persist during the recovery period. In particular, the continued risks to health, including from further outbreaks; the impacts on staff and administration systems as a result of the need for continuing adjustments; and the potential length and volatility of the recovery period given the depth and scale of the economic shock.3. Against this background, objectives of tax administrations in planning for the recovery period might include: (…)

OECD – In Tax, Gender Blind is not Gender Neutral: why tax policy responses to COVID-19 must consider women

OECD – In Tax, Gender Blind is not Gender Neutral: why tax policy responses to COVID-19 must consider women. Women are at the core of the fight against the COVID-19 crisis: they make up the vast majority of healthcare workers and shoulder much of the childcare and home schooling burden during lockdowns. And while tax policy measures play a crucial role in supporting individuals and businesses as we navigate this crisis, the gender impact of taxation is often overlooked – with serious consequences for gender equality. Gender equality is a fundamental human right, as laid out in the UN’s Sustainable Development Goal #5, and failing to achieve it costs us up to 16% of world income every year. Yet, in the context of government revenue collection, gender balance is often neglected as a policy rationale. Could it be that there simply is no need to assess the interaction of tax and gender, or have gender imbalances in tax systems so far been overlooked? And what does this mean for policy-makers in the face of Covid-19? (…) By Michelle Harding, Grace Perez-Navarro, and Hannah Simon, OECD Centre for Tax Policy and Administration (CTPA). June 1, 2020.

OECD – Tax Administration: Privacy, Disclosure and Fraud Risks Related to COVID-19. Version 26 May 2020

OECD – Tax Administration: Privacy, Disclosure and Fraud Risks Related to COVID-19.Version 26 May 2020. Tax administrations around the globe are taking a series of extraordinary measures to support taxpayers and the wider economy, including through helping to deliver wider government support, while also taking a range of actions to ensure continuity of critical operations and the safety of staff and customers. The speed with which those measures are implemented and the adjustments to some tax administration processes and ways of working can lead, however, to a significant increase of the risks of lapses or deviations from disclosure and privacy requirements as well as the risks of fraud. This document captures some of those high-level risks as well as possible mitigation strategies with a particular focus on remote working issues. It has been produced by the OECD Forum on Tax Administration (FTA) Secretariat in collaboration with the FTA Enterprise Risk Management Community of Interest. It also takes account of input provided by tax administrations, including through virtual meetings, surveys and bilateral discussions. This document does not make recommendations as regards particular measures since national circumstances and considerations will vary greatly. 1. During the current period, the risks of lapses or deviations from disclosure and privacy requirements as well as the risks of fraud have increased markedly. This is due to the large increase in remote working, the fast-moving and potentially confusing nature of changes in processes, increased security risks and greater opportunities for errors, misconduct and fraud. 2. This document captures some high-level risks, mitigations, and exposures / vulnerabilities identified by tax administrations that participate in the OECD Forum on Tax Administration’s Community of Interest on Enterprise Risk Management. The items included are intended to be input for consideration and discussion and are not intended to be comprehensive.

OECD Secretariat Analysis of Tax Treaties and the Impact of the COVID-19 Crisis

1.The COVID-19 pandemic has forced governments to take unprecedented measures such as restricting travel and implementing strict quarantine requirements. In this difficult context, most countries are putting stimulus packages in place, including measures to support employment, for example,taking on the burden of unpaid salaries on behalf of companies suffering from theeconomic effects ofCOVID-19 pandemic. As a result of these restrictions, many cross-border workers are unable to physically perform their duties in their country of employment. They may have to stay at home and telework, or may be laid off because of the exceptional economic circumstances. 2.This unprecedented situation is raising many tax issues, especially where there are cross-border elements in the equation; for example, cross-border workers, or individuals who are stranded in a country that is not their country of residence. These issues have an impact on the right to tax between countries, which is currently governed by international tax treaty rules that delineate taxing rights.3.At the request of concerned countries, the OECD Secretariat has issued this guidance on these issuesbased on a careful analysis of the international tax treaty rules.  Version 3 April 2020.

OECD – Tax Administration Responses to COVID-19: Recovery Period Planning

Tax administrations around the globe are taking a series of extraordinary measures to support taxpayers and the wider economy, including through helping to deliver wider government support, while also taking a range of actions to ensure continuity of critical operations and the safety of staff and customers. In order to help inform tax administrations’ decision-making in these areas, the OECD Forum on Tax Administration (FTA), in co-operation with the Inter-American Center of Tax Administrations (CIAT) and the Intra-European Organisation of Tax Administrations (IOTA), has produced two COVID-19 reference documents, one on measures to support taxpayers and one on business continuity considerations1. This third COVID-19 reference document looks at some of the main issues that tax administrations may wish to consider in their planning for the recovery period from the pandemic. This may be a lengthy period given the depth and scale of the economic shock and the likely continuing need for some containment measures.This document has been produced by the FTA Secretariat in collaboration with the Enterprise Risk Management Community of Interest and with the co-operation of CIAT and IOTA. It takes account of input provided by tax administrations, including through virtual meetings, surveys and bilateral discussions. This document does not make recommendations as regards particular measures since national circumstances and considerations will vary greatly. Introduction. 1. Recovery from the profound impacts of the COVID-19 pandemic on people’s lives, jobs, businesses and the wider economy is likely to be lengthy, challenging and multifaceted. Tax administrations, which have played a critical role in the crisis period, will also be central to supporting therecovery. Even during the immediate crisis period there is likely to be significant benefit from early business restoration planning to help identify the main challenges and opportunities for both tax administrations and taxpayers and, where possible, to take early preparatory actions. 2. In undertaking business restoration planning, it will be important to take into account the distinguishing features of the COVID-19 pandemic compared to other crises that are likely to persist during the recovery period. In particular, the continued risks to health, including from further outbreaks; the impacts on staff and administration systems as a result of the need for continuing adjustments; and the potential length and volatility of the recovery period given the depth and scale of the economic shock.

OECD – Latin America and the Caribbean: Tax revenue gains under threat amid deteriorating regional outlook

Tax revenues in Latin America and the Caribbean (LAC) increased to 23.1% of GDP on average in 2018, according to the new edition of Revenue Statistics in Latin America in the Caribbean published today. However, these gains are now under threat as a result of the region’s deteriorating fiscal outlook, which has been exacerbated by the COVID-19 pandemic and the global economic crisis.

New OECD data provides a baseline for measuring the impact of COVID-19 on labour taxes

Taxing Wages 2020 shows that the “tax wedge” – total taxes on labour costs paid by employees and employers, minus family benefits, as a percentage of the labour cost to the employer – was 36.0% in 2019. This OECD-wide average rate, calculated for a single person with no children earning the average wage,  represents a fall of 0.11 percentage points from 2018.

OECD – TAX AND FISCAL POLICY IN RESPONSE TO THE CORONAVIRUS CRISIS

Decisive action has been taken to address the health and economic crises in the face of major uncertainty – The outbreak of COVID-19 is resulting in a health crisis and a drop in economic activity that are without precedent in recent history. Containing and mitigating the spread of the virus has rightly been the first priority of public authorities, to reduce the incidence of the disease, limit the pressure on healthcare systems and prepare for a stronger rebound as mitigation measures are relaxed. The containment and mitigation measures have had sudden and profound economic impacts. OECD estimates suggest that the containment measures could lead to an initial decline in output between one fifth and one quarter in many economies, with consumer spending falling initially by about one third – these are rough indications that only capture the direct effects of containment in a context of very large uncertainty (OECD, 2020). Uncertainty about the development of the pandemic and the duration of the efforts needed to contain and mitigate the virus is large. The evolution of the pandemic will also depend on ongoing efforts to expand the capacity to test, track and trace, to improve treatments for those with severe symptoms, and to develop a vaccine. Many countries have already acted forcefully to limit the economic hardship caused by the direct effects of containment measures.

OECD – Overview of Country Tax Policy measures in response to Covid-19 crisis

The excel table provides an overview of the tax policy measures that countries have implemented in response to the Covid-19 pandemic.In addition to tax policy measures, the table lists measures that are relevant to tax policy, such as changes in benefits and benefit entitlements. Many countries are providing loans to businesses at (typically) reduced interest rates, provide loan guarantees, etc. These measures have, in general, not been included. In general, the table does not include tax administration measures such as extensions of filing deadlines, changes in penalties for late filing, taxpayer service measures, debt repayment measures, changes in audit policies, debt recovery measures etc. These measures are covered in a separate questionnaire from the Forum of Tax Administration. Nevertheless, the table does include measures related to the deferral or waiving of taxes or of changes to tax refunds, as these measures are tax-policy related.The information in the table covers central governments, but lists also changes in sub-central government taxing powers or financing agreements.The table is presented on a country-by-country basis, but the table can be sorted in type of tax or type of measure (or any other category included in the rows of the “tax policy measures Covid-19” workbook). In addition, the excel file contains two HEAT MAPS – the first worksheet visualises the types of taxes that have been reformed for each country; the second map visualises the type of measures that have been introduced for each country. These workbooks provide an overview of the where the tax policy action has taken place! The list contains information for both OECD and non-OECD member countries. The excel file contains an overview sheet that classifies the tax measures implemented by countries in response to the COVID-19 pandemic. In addition, the “OVERVIEW” sheet indicates the measures that have been taken by OECD member and G20 countries that are not member of the OECD. Please note that the last column in the “tax policy measures Covid-19” sheet allows to search for the date when the information was included for the first time or updated.This allows delegates to identify the most recenlty included information (by sorting by date using the dropbox in the cell on the first row in column M). Please be aware that some of the links can only be accessed if you have a subscription to the underlying source of the information. The OECD Secretariat plans to update this table on a regular basis so that delegates of member countries of the Inclusive Framework of BEPS continue to be up-to-date of the measures implemented in other Inclusive Framework member countries.