OECD Tax Administrators To Join Forces In Fighting Tax Non-Compliance

Tax administration heads from more than 30 countries, meeting in Seoul under the auspices of the Organization for Economic Cooperation and Development's (OECD) Forum on Tax Administration, have agreed to work together on ways to improve tax administration and to address the significant and growing problem of international non-compliance with national tax requirements.

In a summing up speech, the chair of the meeting, U.S. IRS Commissioner Mark W. Everson noted that enforcement of tax laws has become more difficult as trade and capital liberalisation and advances in communications technologies have opened the global marketplace to a wider spectrum of taxpayers. While this more open economic environment is good for business and global growth, it can lead to structures which challenge tax rules, and schemes and arrangements by both domestic and foreign taxpayers to facilitate non-compliance with our national tax laws, he noted.

Participants in the Seoul meeting shared the view that international non-compliance is a significant and growing problem and agreed to improve practical co-operation between revenue bodies and other law enforcement agencies of governments to counter non-compliance. Their discussions also revealed continued concerns about corporate governance and the role of tax advisors and financial and other institutions in relation to non-compliance and the promotion of unacceptable tax minimization arrangements. They also noted the increased flows of capital into private equity funds and the potential issues this may raise for revenue bodies. Read more at irs.gov