Reforming International Taxation: Participation and Collaboration of Developing Countries

The first part of the chapter summarizes key tax issues specific or especially important to developing countries, such as capacity constraints, base erosion and profit shifting (BEPS) by multinational corporations (MNE), illicit financial flows, taxation of natural resources, and blacklisting. It then discusses the challenges faced by lower-income jurisdictions when representing their interests at international tax policy fora. It highlights inclusiveness issues within international institutions working on tax policy matters, and the factors that hinder the effective participation of developing con-tries in international tax policy debates. The chapter also highlights the potential of regional cooperation, and the ways in which regional fora can help developing countries effectively voice their opinions. The chapter concludes that while the actual representation of developing economies in international tax policy making did increase in recent years, significant work remains to ensure developing countries are truly represented on an equal footing, and through genuine participation and collaboration.