Reforming tax systems can boost development by giving countries more autonomy. This can lead to broader reforms too.

The launch of the ATAF marks a milestone in the continent’s quest for greater self-reliance, economic growth and social development.

Some major businesses are starting to view taxation as a mainstream part of their corporate social responsibilities. Others should follow their example.

A lot of debate about tax and developing countries nowadays tends to focus on how to reduce revenue leakage through offshore tax havens. But there is another hot issue called transfer pricing which developing countries have to be mindful of, particularly if they want to avoid the risk of losing out on tax revenue from cross-border transactions carried out by multinational enterprises. How does it work?

Emblazoned on the front of the Internal Revenue Service building in Washington DC is a quote from American poet, author and judge, Oliver Wendell Holmes: “Taxes are what we pay for a civilized society ” It is the potential to inspire better governance through raising revenue that matters to civil society, and everyone has a role to play. To act as responsible corporate citizens, companies must pay the right amount of tax and be transparent about it. Yet Christian Aid estimates that developing countries lose as much as $160 billion–greater than the global aid budget–to companies dodging tax.

Charities have become the latest victims of abuse by tax fraudsters and money launderers. Can they be better protected?

In February 2009, Singapore and Hong Kong, China, undertook to bring tax transparency up to international standards and relax bank secrecy laws for tax purposes. Hot on the heels of these announcements were others from the Cayman Islands, Jersey, Andorra and Liechtenstein, and more recently we have seen Austria, Belgium, Luxembourg and Switzerland signing up to the OECD standard on exchange of information.

In 2008 a US senate subcommittee issued a report alleging that banks located in tax havens cost US taxpayers some $100 billion a year in lost revenue. That is a considerable leakage, especially in light of US laws, institutions and other mechanisms to help control tax evasion.

Though OECD work on making international tax fairer began over 50 years ago, it was not until 1998 and a report on harmful tax competition that the OECD stepped up its work against tax evasion, tax havens and abuse.

Record fall in GDP; Economy; Gender learning; Other news; Soundbites; Plus ça change...

The financial crisis might not have been caused by taxation, but it nonetheless raises concerns about evasion, compliance and transparency in financial markets. The OECD Observer asked South Africa's minister of finance, Pravin Gordhan, who chairs the OECD's Forum on Tax Administration, to explain.

"The right to privacy will remain a cornerstone of our legal system"

The economic crisis has hit the entire world economy, with governments stepping in to rescue financial systems and kick-start economic growth. This adds up to a triumph for government fiscal policy, though fiscal policy must be used audaciously.

Can the OECD Model Tax Convention, which is 50 years old this year, continue to fulfill its role of helping to make international taxation fairer and more manageable? Probably yes, though there are challenges.

Denmark is confirmed as the OECD’s highest-tax country, followed by Sweden, while Mexico and Turkey remain the lowest-taxing countries, the latest 2008 edition of Revenue Statistics says. Denmark’s tax-to-GDP ratio stood at 48.9% in 2007, while Turkey’s was at 23.7% of GDP.

In half a century the OECD Model Tax Convention has established itself as a model for international business. Here is how.

The OECD’s campaign against harmful tax competition garnered a higher profile at the start of 2008 with disclosures concerning widespread tax evasion by Germans and others through Liechtenstein. The revelations drew wide media attention in Germany and beyond, and have prompted fresh resolve in many OECD countries to fight tax evasion via offshore havens. In fact, investigations have been launched in over a dozen countries since then, including Australia, Canada, France, Germany, Italy, New Zealand, Spain, Sweden, the UK and the US.

Real estate is an important strategic sector in most economies–just think of the links to construction or the importance of property in the investment portfolios of pension funds. But it is also vulnerable to abuse for money laundering and tax fraud.

How do your taxes and social benefits differ from your peers in other countries and what is the effect on your income? How much income do unemployed people get in different countries? The new OECD online taxbenefit calculator may have the answer. Our experts have taken all those complex legal rules about who is entitled to what benefit and who should pay how much tax in different countries and put them into a simple tax-benefit calculator so that you can decide yourself which comparisons you would like to make.

Corporate tax is falling, both as a share of GDP and in the global tax take. Yet, just like other economic players, businesses rely on public investments too. To avoid a crisis, companies should assume a higher share of the overall tax burden.

Imagine a tax return no longer than a postcard. This at least is what proponents of a “flat tax” system predict.

Minimum wages are hotly debated as ways of improving equity and boosting the wages of lower skilled workers. All OECD countries apply some kind of wage floor. Do they achieve their goals?

Death and taxation may be certain, but what about the tax level? The answer to that depends more on social status and where you work.

Can taxation help governments achieve environmental goals with respect to energy use and emissions? Yes, with conditions.

Globalisation brings costs and benefits, even for the tax professional. The move towards a borderless world has opened up new opportunities for taxpayers to minimise their overall tax liabilities. Much of this tax planning is legitimate. Good tax planning is driven by the reality of businesses having to operate with increasingly complex laws, particularly affecting international activities, while at the same time wanting to legally minimise their costs, including tax costs.

Fiscal responsibility is no longer a taboo in Latin America. Just look at Mexico. Once a country with burgeoning budget deficits, it is now a stable global economic player. But this OECD member is not the only example. New governments have been elected in Brazil and Chile, each promising fiscal rectitude.

Who owes what, how and where? Understanding the international array of tax treaties can be a headache for businesses everywhere, not to mention tax authorities. There are 2,500 such treaties in force around the world, covering everything from income tax to pension plan liabilities. No one, be they companies or governments or individuals, likes to be short-changed, which makes global tax such a sensitive issue.