IMF, World Bank, UN, OECD form new group to stop tax erosion

(Left to right)  International Monetary Fund Managing Director Christine Lagarde , Oxfam International Executive Director Winnie Byanyima and Columbia University Professor Joseph Stiglitz at the Fiscal Forum 2016 seminar at the IMF/World Bank Spring
(Left to right) International Monetary Fund Managing Director Christine Lagarde , Oxfam International Executive Director Winnie Byanyima and Columbia University Professor Joseph Stiglitz at the Fiscal Forum 2016 seminar at the IMF/World Bank Spring Meetings on April 17, 2016.PHOTO: IMF

WASHINGTON (Reuters) - The International Monetary Fund and the World Bank said on Tuesday (April 19) they are joining forces with other international organisations to cooperate on tax issues and develop new tools and standards for taxing multinational enterprises.

The new group, which will also include the United Nations and the Organisation for Economic Cooperation and Development (OECD), will especially focus on building effective tax systems in developing countries and avoid tax base erosion, the partners said.

The decision by the organisations to formally cooperate predates the release of the so-called Panama Papers earlier this month, which highlighted the widespread use of tax haven countries by wealthy individuals to avoid taxes.

But an IMF official said the groups welcomed the heightened attention on tax issues that the controversy has stoked.