This year’s Conference took the pulse of digitalization, which is proving to be a major force for change in the tax landscape. One key aspect is how and where to tax technology-related income—whether any special tax rules are needed or the broader tax system needs a more general update. On the administrative side, digital solutions have the potential to revolutionize how tax administrations enforce compliance and collect revenue though the application of artificial intelligence and other advanced technologies. Leading thinkers and practitioners from national governments, private sector, civil society, IMF, OECD and World Bank discussed how developing countries can best navigate this rapidly evolving field. There will be no live webcast for this event. The recording of the conference is now posted under the Session Recordings tab below.
Strengthening Tax Systems in a Digitalizing World
October 20, 2019
701 18th Street, NW, Washington, DC │ Room JB1-080
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The World Bank Group and International Monetary Fund hosted the Tax Sunday Conference on “Strengthening Tax Systems in a Digitalizing World” on Sunday, October 20, 2019 from 10 am to 3:15 pm at The World Bank Headquarters (J Building, 701 18th Street NW, Washington DC).
This conference is part of a series of Tax Sundays that takes places immediately after Annual and Spring Meetings with a focus on international tax issues for developing countries. Tax Sunday provides a platform for lively discussions on cutting-edge ideas and developments in international taxation.
This year’s Tax Sunday took the pulse of digitalization, which is proving to be a major force for change in the tax landscape. Leading policy makers and thinkers from governments, academia, civil society, business and the IMF and WBG discussed how developing countries can best navigate this rapidly evolving field.
The conference agenda focused on two major areas: 1) International tax reform and digitalization in developing economies – how and where the digitalizing economy should be taxed; and 2) The role of innovative technology in helping tax administrations enforce cross-border compliance and collect revenue.
The conference attracted an audience of 172 participants - including policy makers and tax administrators, civil society and business representatives, academics, and WBG and IMF Staff. Because the seating is limited, attendance was by invitation only. For further information about Tax Sunday, please contact us at Tax4Dev@worldbank.org.
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Sunday, October 20, 2019
Room JB1-080 10:00 Registration 10:30 Welcome and Overview - Mr. Marijn Verhoeven, Lead Economist & Acting Practice Manager, Fiscal Policy and Sustainable Growth Unit, Macroeconomics, Trade and Investments (MTI GP), World Bank Group
10:35 Opening Remarks Mr. Vitor Gaspar
Director, Fiscal Affairs Department, IMF
10:50 Session 1: International Tax Reform, Digitalization and Developing Economies
Introduction
- Dr. Martin Hearson, Research Fellow, Institute for Development Studies (presentation pdf)
Members of the OECD’s Inclusive Framework have set out an ambitious plan to reach consensus by 2020 on how the digital economy—and by extension, other cross-border income—should be taxed. This session builds upon the recent IMF paper Corporate Taxation in the Global Economy discussed during the 2019 Spring Meetings. It takes account of international developments since then and explores developing countries’ options for promoting a fairer international system as discussed in the new forthcoming World Bank paper “International Tax Reform, Digitalization, and Developing Economies.” The session will open with a perspective on:
- Formulaic approaches to taxing corporate profits
- Appropriately targeting low-taxed profits
- Stronger guidance on withholding tax
- More effective access to information
Panel Discussion
Chair and Moderator
- Ms. Victoria J. Perry, Deputy Director, Tax Policy, Fiscal Affairs Department, IMF
Panelists
- Ms. Marlies de Ruiter, Tax Partner and Global International Tax Policy Leader, EY
- Mr. Stephen E. Shay, Senior Lecturer, Harvard Law School (presentation pdf)
- Ms. Liselott Kana, Head of Department (International Taxation), Servicio de Impuestos Internos, Chile
- Ms. Irene Ovonji-Odida, Member, Independent Commission for the Reform of International Corporate Taxation (ICRICT) (presentation pdf)
12:20 Lunch
12:50 Session 2: Update and Discussion on Progress of the Inclusive Framework
The OECD will provide an update and an opportunity to discuss recent developements of the Inclusive Framework on Base Erosion and Profit Shifting, including the implementation of BEPS Actions and progress with a consensus solution for addressing the tax challenges arising from digitalization in 2020.
Chair and Moderator
- Mr. Michael Keen, Deputy Director, Fiscal Affairs Department, IMF
Speaker
- Mr. Pascal Saint-Amans, Director, Centre for Tax Policy and Administration, OECD
13:35 Session 3: Using Innovative Technology to Combat Cross-Border Non-Compliance
Introduction
- Mr. Jonathan Davis, Partner, McKinsey, Global Lead on Tax (presentation pdf)
Data analytics has the potential to improve risk management, detect irregularities, and promote integrity. Considering the widespread use of data analytics in taxation, this session will close with a presentation of different cases that involve experiences with using advanced technology, followed by a panel discussion on these technologies’ fit for purpose in a developing country context. The panel will explore key questions such as:
- Is there a high return-on-investment on data analytics, including in developing countries?
- What are the pre-conditions for governments to make effective use of data analytics?
- Do we have robust responses to known risks such as algorithm bias and AI security?
- What are the legal and political challenges to using AI and how do we address them?
Panel Discussion
Chair and Moderator
- Mr. Marcello Estevão, Global Director, MTI GP, World Bank Group
Panelists
- Ms. Marina Walker Guevara, Director of Strategic Initiatives and Network, International Consortium of Investigative Journalists
- Mr. Jeffrey Saviano, Global Tax Innovation Leader, EY
- Dr. Terra Saidimu Leseeto, Acting Commissioner for Intelligence and Strategic Operations, Kenya Revenue Authority
- Ms. Katherine Baer, Assistant Director, Fiscal Affairs Department, IMF
15:05 Closing Remarks Ms. Ceyla Pazarbasioglu
Vice President for Equitable Growth, Finance and Institutions, World Bank Group
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Opening Remarks by Mr. Vitor Gaspar, Director, Fiscal Affairs Department, IMF
Session 1: International Tax Reform, Digitalization and Developing Economies
- Introduction by Dr. Martin Hearson, Research Fellow, Institute for Development Studies
- Panel Discussion
- Q&A
Session 2: Update and Discussion on Progress of the Inclusive Framework
- Discussion with Mr. Michael Keen, Deputy Director, Fiscal Affairs Department, IMF, and Mr. Pascal Saint-Amans, Director, Centre for Tax Policy and Administration, OECD
- Q&A
Session 3: Using Innovative Technology to Combat Cross-Border Non-Compliance
Closing Remarks by Ms. Ceyla Pazarbasioglu, Vice President, Equitable Growth, Finance and Institutions, World Bank Group
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Websites:
- Domestic Resource Mobilization - World Bank Group
- Platform for Collaboration on Tax - World Bank Gorup
Relevant Reading Materials:
- International Tax Reform, Digitalization, and Developing Economies (also on the right side menu)
- Corporate Taxation in the Global Economy (also on the right side menu)
- Transfer Pricing and Developing Economies : A Handbook for Policy Makers and Practitioners
- Malaysia's Digital Economy : A New Driver of Development
- Low Tax Jurisdictions and Preferential Regimes : Policy Gaps in Developing Economies
- The Benefits of Electronic Tax Administration in Developing Economies : A Korean Case Study and Discussion of Key Challenges
- Strengthening Domestic Resource Mobilization : Moving from Theory to Practice in Low-and Middle-Income Countries
- Innovations in Tax Compliance : Conceptual Framework
Additional Resources:
- PCT Progress Report 2018-2019
- Taxation and the Sustainable Development Goals Conference Report
- Enhancing the Effectiveness of External Support in Building Tax Capacity in Developing Countries
- Transfer Pricing Documentation (Draft)
- Offshore indirect transfers (Draft)
- Comparables for transfer pricing
- Use of tax incentives
- Tools for the assessment of tax incentives
- Taxation and the shadow economy : how the tax system can stimulate and enforce the formalization of business activities
- The Administrative Review Process for Tax Disputes : Tax Objections and Appeals in Latin America and the Caribbean - A Toolkit
- Fiscal Policies for Development and Climate Action
- Redistribution via VAT and cash transfers: an assessment in four low- and middle-income countries
- The Cost and Benefits of Tax Treaties with Investment Hubs : Findings from Sub-Saharan Africa
- Tobacco Tax Reform A Multisectoral Perspective
- Etude sur la Fiscalite en Afrique de l’Ouest : Rapport de Synthese (French)
- Casting a Wider Tax Net: Experimental Evidence from Costa RicaRisk-based tax audits : approaches and country experiences
- Incentives and Investments : Evidence and Policy Implications
Distributional Analysis of Tobacco Tax
- Distributional Effects of Tobacco Taxation A Comparative Analysis
- The Distributional Impacts of Cigarette Taxation in Bangladesh
- Time to Quit : The Tobacco Tax Increase and Household Welfare in Bosnia and Herzegovina
- The Welfare and Distributional Effects of Increasing Taxes on Tobacco in Vietnam
- Are Tobacco Taxes Really Regressive? Evidence from Chile
- Regressive or Progressive? The Effect of Tobacco Taxes in Ukraine
MULTIMEDIA
Tax Sunday 2019 Photo Album
MULTIMEDIA
Tax Sunday Interview with Dr. Terra Saidimu Leseeto
Tax Sunday Interview with Dr. Terra Saidimu Leseeto on AI
Tax Sunday Interview with Marlies De Ruiter
Tax Sunday Interview with Dr. Martin Hearson