July 26, 2016Michael Sutherland-Shaw
Building tax capacity in developing countries starts with “enthusiastic country commitment”, according to a new report from four of the world’s most prominent international institutions.
Working together as the new Platform for Collaboration on Tax (PCT), the International Monetary Fund, OECD, United Nations and World Bank released a report identifying measures to building tax capacity.
This comes following a request by G20 finance ministers in February 2016. The PCT was tasked with helping ensure effective implementation of technical assistance programs, as well as recommending how countries can contribute funding for tax projects.
With more and more countries continuing to recognize the importance of developing strong tax systems, one of the key messages from the report is rather than “passive ownership”, successful tax capacity strengthening relies on “continued energy, enthusiasm and commitment” at the highest levels.
“G20, the international organizations (IOs) and development partners should encourage political support for tax systems development,” according to the report.
While this process can have its challenges, the report highlights a number of key enablers that encourage and reinforce the commitment within a supportive political environment:
- A coherent revenue strategy as part of development financing plan
- Strong coordination among well-informed and results-oriented providers
- A strong knowledge and evidence base
- A strong regional co-operation and support
- Strengthened participation of developing countries in international rule setting
- Learning from experience
While the report reflects a broad consensus among PCT staff, it should not be regarded as the officially endorsed views of those organizations or their member countries.
At FreeBalance, we support building tax capacity. From G7 to developing countries, we are in the business of supporting good governance around the world.
We support public financial management (PFM) reform by providing our unified Government Resource Planning (GRP) platform to the public sector. The web-native platform supports financial, human resources and performance management, offering scalability over time to reflect the evolving needs of the modern public sector.
More specifically, the FreeBalance Government Receipts Management software enables the unique revenue raising mechanisms of government, such as taxation. Some of its functions include:
- Support income, property, custom, excise and sales taxes at national and sub-national levels.
PERMITS & LICENSING
- Manage permit, license, certification, user fee, fines and other government processes that collect revenue.
CUSTOMER & TAXPAYER MANAGEMENT
- Manage citizen and corporate information and identity across revenue systems
- Manage sales of government assets, products and services.
- Support front and back office receipts handling, collections, invoicing statements, and dunning letters.
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