Strengthening Tax Systems in a Digitalizing World

• Mr. Marijn Verhoeven, Lead Economist & Acting Practice Manager, Fiscal Policy and Sustainable Growth Unit, Macroeconomics, Trade and Investments (MTI GP), World Bank Group

Mr. Vitor Gaspar

Director, Fiscal Affairs Department, IMF

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)

Lunch

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

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

Ms. Ceyla Pazarbasioglu

Vice President for Equitable Growth, Finance and Institutions, World Bank Group