Tax Evaders Beware: Tax Inspectors Without Borders Are Coming
- Jul 15, 2015 | Gail Cole
Although it sounds like an SNL spiff on Doctors Without Borders, Tax Inspectors Without Borders is real. The program, launched in Addis Ababa this week by the Organization for Economic Cooperation and Development and the United Nations Development Program, pairs experienced tax officials with those in developing countries where tax audits are not very effective.
According to the OECD, “In addition to improvements in the quality and consistency of audits and the transfer of knowledge to recipient administrators (tax administrations seeking assistance), broader benefits are also anticipated including the potential for more revenues, greater certainty for taxpayers and encouraging a culture of compliance through more effective enforcement.”
Through Tax Inspectors Without Borders (TIWB), “experienced tax audit experts will work directly help local officials in developing country tax administrations on current audits and audit related issues concerning international tax matters….” Its “learning by doing” approach will help developing countries to “reap the benefits of the G20 tax agenda” – a goal of the G20 2013 Leaders Declaration.
Although the program officially launches this week, pilot programs have been underway in numerous countries, including Albania, Ghana and Senegal. In Colombia, the program appears to have increased tax revenue from $3.3 million USD in 2011 to $33.2 million USD in 2014. If those kinds of numbers can be replicated across the globe, TIWB will be a huge success. Additional information.
TIWB is targeting tax evasion (are inspectors on their way to Greece, where tax dodging is a national pastime?) but the increased audit activity will likely impact all businesses. The best defense for many sellers is an automated tax solution. Learn more.