Identifying and addressing vulnerabilities to aggressive tax avoidance in developing countries

This project will contribute to strengthened capacity of developing countries to identify and address the vulnerabilities to aggressive tax avoidance that produce the greatest risks based on the country’s economic circumstances, which would be demonstrated by the application by each country of a risk assessment tool to identify its most significant risks from aggressive tax avoidance. Second, the project will assist each country in developing a customized action plan to address those risks. Third, the project will provide technical assistance to each target country to support implementation of the action plan.This project will complement recent UN projects that have focused on various aspects of IFFs, including measurement, reporting, data and statistical capacity. It will do so through close engagement with the target countries to identify the specific tax avoidance structures used by MNEs in those target countries and then assisting them, including through technical assistance, in addressing the related vulnerabilities in their tax policy and administration.Accordingly, the project will also promote sustainable development by helping to reduce risk and build resilience and preparedness to deal with aggressive tax avoidance from MNEs in developing countries facing different geographic and economic circumstances. The target countries will encompass a range of industries and engage with multiple trading partners so that the experience, materials and tools developed during this project will respond to the different challenges faced by a broad range of developing countries.The project will be implemented by UNDESA/FSDO. In planning, implementing and learning from project activities, UNDESA/FSDO will closely collaborate with ECA, ECLAC, ESCAP, UNCTAD and UNSD, as well as the Resident Coordinator Offices.