The International Monetary Fund has called for a crackdown on cross-border tax evasion and suggested the creation of a World Tax Organisation to co-ordinate efforts.
A report co-authored by director of fiscal affairs Carlo Cottarelli and deputy division chief Andrea Schaechter says action on tax evasion and erosion is needed to make the drastic spending cuts being proposed across the world fair.
The report says: “An equitable adjustment will require a more energetic fight against tax evasion and erosion, both nationally and internationally.
“The recent initiatives undertaken to fight tax havens are an important development in this respect. But more coordination is needed among tax policies in a globalised economy. Maybe it is time to revive the idea of a World Tax Organisation to add-ress these coordination issues.”
Taxbriefs editorial director Danby Bloch says: “The aim will be to curb beggar-my-neighbour competing tax policies and coordinate the hunt for tax evaders.”