Global tax reform was on development leaders’ minds as they met last week in New York City to check on progress toward financing the sustainable development goals through the so-called Addis agenda, drafted at the Financing for Development Conference in July 2015.
Pressure is mounting on development and political leaders to confront tax evasion in the aftermath of the recent “Panama Papers” leaks, which exposed more than 2,000 clients engaged in tax avoidance at the hands of the world’s fourth largest overseas finance consulting firm, Mossack-Fonseca. Oxfam estimates that developing countries lose $200 billion annually through similar tax avoidance.
Yet how — and where — world leaders should address tax reform remains contentious. Many of the controversial tax practices remain legal and commonplace, particularly among Western citizens and Western corporations operating on the global market. And one question that haunted the discussions in Addis, and reappeared in negotiations last week in New York, is where a global tax facility should be based.
About the author
Molly Andersmollyanders_dev
Molly Anders is a former U.K. correspondent for Devex. Based in London, she reports on development finance trends with a focus on British and European institutions. She is especially interested in evidence-based development and women’s economic empowerment, as well as innovative financing for the protection of migrants and refugees. Molly is a former Fulbright Scholar and studied Arabic in Syria, Jordan, Egypt and Morocco.
