OECD warns of tax evasion of up to 1.3% of GDP in developing countries
Developing countries suffer from a higher degree of international tax avoidance, which amounts to an estimated cost of 1.3% of gross domestic product (GDP), according to figures from the International Tax Administration Survey (international tax administration survey; ISORA).
In this regard, the Organization for Economic Co-operation and Development (OECD) agree that the impact of this problem is even greater in developing regions, because in these countries the ratio between taxes and GDP is a minor.
When submitting your Tax Moral Survey II: Building Trust Between Tax Administrations and Big Businessthe OECD explained that while in developing countries tax evasion is 1.3%, in the countries that make up the OECD, including Mexico, tax evasion by large taxpayers reaches 1%.
He revealed that the report on moral tax it focuses on developing countries because they are more dependent on tax revenues from large corporations, suffer from a higher level of tax evasion and face greater capacity challenges”.
About the Tax morality investigation IIpointed out that this is a report that includes the perceptions of multinational companies (MRS) and are supplemented by those of 1,240 tax officials from 138 jurisdictions, who participated in an internet survey.
Among the main results of the Tax Morality Survey II, according to the OECDis that the most common interaction between tax authorities and multinational enterprises, ie the timely payment of taxes, is generally considered to be good in all regions.
“Timely payment of taxes is essential for voluntary compliance and, in this regard, across all regions, the perception is that large businesses are complying with their tax obligations within the established timeframes, as at least 77% of government officials taxpayers agree that most or nearly all large corporations pay on time,” they said.
Where a greater problem is observed is when the authority requests information from companies, a great disparity is observed “in Latin America, less than half (44%) of the tax authorities believe that most or all of the large companies provided the requested information in the correct way.This percentage increases to 54% in Africa, 61% in Asia and 75% in the OECD.
For their part, companies have also raised questions about the purpose and effectiveness of certain requests, indicating that a prior understanding of what the Administration intends to analyze would allow them to better comply and reduce the necessary compliance burdens. .
Finally, they said that a lower degree of cooperation is perceived when it comes to resolving interpretations of the law, although the percentage is still high in general. Again, in all regions except Latin America, more than 60% of managers viewed most enterprises as cooperatives; in Latin America, the figure was 48%.
Source: El Heraldo De Mexico
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