The OECD’s Centre for Tax Policy and Administration and the IGF, a group of about 60 countries that are also UN members, on October 19, released three final practice notes addressing tax avoidance in the mining sector. The reports are designed to help developing country tax administrations combat tax avoidance by multinationals.
Comments submitted by stakeholders in response to earlier versions of the practice notes were also released.
The final report, Limiting the Impact of Excessive Interest Deductions on Mining Revenue, is designed to help tax policy-makers in mineral producing countries strengthen their defenses against multinationals that use debt excessively as a mechanism to shift profits to low tax countries.
This report was accompanied by the release of 13 public comments responding to an April 18 draft of the interest deduction report, including comments submitted by BIAC and the governments of Angola, Bolivia, and Chile.
A second report, Tax Incentives in Mining: Minimising Risks to Revenue, supplements earlier work on the topic undertaken by the Platform for Collaboration on Tax on tax incentives. Seven comments were released in response to a June 18 draft version of this report, including comments by BIAC, OXFAM, and the governments of South Africa and Tanzania.
The final report, Monitoring the Value of Mineral Exports: Policy Options for Governments, addresses how governments can monitor the value of mineral exports to ensure appropriate taxation, considering the type of mineral, the risk of undervaluation, existing government capacities, and available budget. Public comments to a draft version of this report were also released.
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