LONDON — Aid groups could find themselves facing huge historic tax bills as they struggle to navigate the changing aid tax landscape, experts have warned.
Aid has historically been tax-exempt, but as low-income countries tighten their tax rules and some donors shift responsibility for compliance onto their suppliers, the issue has become more complex.
Major British development contractor Oxford Policy Management recently announced losses of £3.7 million ($4.4 million) for last year, the majority of which was due to unpaid tax on closed and current projects overseas.