Regional : Enhancing Tax Transparency of ADB Developing Member Countries

Sovereign Project | 51320-001

RETA 9433 is a regional technical assistance (TA) focused on enhancing ADB developing member countries' (DMCs) capacity to: (i) meet internationally agreed standards on tax transparency; (ii) counter tax evasion; and (iii) protect themselves against aggressive forms of tax planning known as base erosion and profit shifting (BEPS). Tax evasion and BEPS critically impact developing economies' ability to mobilize resources that support their sustainable development. Through this TA, ADB assists its DMCs to:

- Establish legal and institutional systems/that meet the international tax integrity standards to inhibit tax-related Illicit Financial Flows;

- Develop capacity to become members of and participate in the work of the Global Forum on Transparency and Exchange of Information for Tax Purposes and the OECD/G20 Inclusive Framework on BEPS on an informed basis; and

Project Details

  • Project Officer
    Meyer-Nandi, Sathi
    Office of Anticorruption and Integrity
    Request for information
  • Country/Economy
    Regional
  • Sector
    • Public sector management
Project Name
Enhancing Tax Transparency of ADB Developing Member Countries
Project Number
51320-001
Country / Economy
  • Regional
  • Armenia
  • Azerbaijan
  • Bhutan
  • Cambodia
  • Cook Islands
  • Fiji
  • Georgia
  • Indonesia
  • Kyrgyz Republic
  • Lao People's Democratic Republic
  • Maldives
  • Mongolia
  • Nepal
  • Pakistan
  • Palau
  • Philippines
  • Papua New Guinea
  • Marshall Islands
  • Samoa
  • Solomon Islands
  • Tajikistan
  • Thailand
  • Tonga
  • Uzbekistan
  • Vanuatu
  • Viet Nam
Project Status
Active
Project Type / Modality of Assistance
  • Technical Assistance
Source of Funding / Amount
TA 9433-REG: Enhancing Tax Transparency of ADB Developing Member Countries
Source Amount
Technical Assistance Special Fund US$ 2.00 million
TA 9433-REG: Enhancing Tax Transparency of ADB Developing Member Countries
Source Amount
Technical Assistance Special Fund US$ 1.30 million
TA 9433-REG: Enhancing Tax Transparency of ADB Developing Member Countries
Source Amount
Technical Assistance Special Fund US$ 700,000.00
TA 9433-REG: Enhancing Tax Transparency of ADB Developing Member Countries
Source Amount
Technical Assistance Special Fund US$ 1.00 million
Operational Priorities
  • OP6: Strengthening governance and institutional capacity
Sector / Subsector
  • Public sector management / Public administration

Gender
No gender elements
Description

RETA 9433 is a regional technical assistance (TA) focused on enhancing ADB developing member countries' (DMCs) capacity to: (i) meet internationally agreed standards on tax transparency; (ii) counter tax evasion; and (iii) protect themselves against aggressive forms of tax planning known as base erosion and profit shifting (BEPS). Tax evasion and BEPS critically impact developing economies' ability to mobilize resources that support their sustainable development. Through this TA, ADB assists its DMCs to:

- Establish legal and institutional systems/that meet the international tax integrity standards to inhibit tax-related Illicit Financial Flows;

- Develop capacity to become members of and participate in the work of the Global Forum on Transparency and Exchange of Information for Tax Purposes and the OECD/G20 Inclusive Framework on BEPS on an informed basis; and

- Become parties to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters and the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS./

Project Rationale and Linkage to Country/Regional Strategy
Impact

Capacity of developing countries to strengthen tax systems, reduce illicit financial flows, and combat tax evasion (a predicate offense for money laundering) and corruption increased.

Project Outcome

Description of Outcome

Global tax transparency increased and legal and institutional tax systems of DMCs to protect themselves against tax evasion and aggressive forms of tax planning strengthened.

Progress Toward Outcome
RETA 9433 is being implemented in a steady manner, meeting the expected targets and results (see details below). ADB has collaborated with other institutions, such as the OECD, Global Forum and PITAA, to avoid duplication, leverage resources, and identify priorities. OAI and SDCC will continue to identify other DMCs that may benefit from ADB assistance.

Implementation Progress

Description of Project Outputs

In-country consultation and country capacity needs assessment conducted

Operational support to address issues or deficiencies identified in the country capacity needs assessment for each participating DMC provided

Regional high-level policy dialogue to raise awareness conducted and commitment to implement identified measures obtained

Skills development through training workshops, conferences, and seminars conducted in-country and regionally; and relevant manuals, handbooks and/or e-learning modules produced

Regional Hub in Asia and Pacific to support DMCs in achieving their SDGs through DRM and ITC established

Status of Implementation Progress (Outputs, Activities, and Issues)

Under RETA 9433, ADB is supporting exchange of information (EOI) - both EOI on request (EOIR) and automatic EOI (AEOI) and base erosion and profit shifting (BEPS)-related initiatives in Asia and the Pacific by increasing technical assistance (TA) operations that: (a) assist developing member countries (DMCs) in promoting their domestic resource mobilization (DRM) by enhancing their ability to protect themselves against tax evasion and BEPS; (b) develop the capacity of DMCs to become members of and participate in the work of the Global Forum on Transparency and Exchange of Information for Tax Purposes (Global Forum); and (c) support DMCs' participation in BEPS initiatives promoted by lead organizations. As of October 2018, 21 DMCs are not members of the Global Forum and 28 DMCs are not participating in the BEPS Inclusive Framework.

Output 1: In-country consultation and country capacity needs assessment conducted.

ADB is currently assisting the Republic of Marshall Islands (RMI), the Federated States of Micronesia (FSM), Papua New Guinea (PNG), Samoa, Maldives, Philippines and Thailand' in their efforts to establish and enhance legal and institutional systems to increase tax transparency and protect themselves against tax evasion. Other countries identified for assistance include Cambodia, Fiji, and Mongolia.

Output 2: Operational support to address issues or deficiencies identified in the country capacity needs assessment for each participating developing member country provided.

To date, 3 EOIR Action Plans have been developed in close cooperation with FSM, RMI and Samoa. Two additional EOIR Action Plans will be developed with PNG and Thailand, and 2 AEOI Action Plans will be prepared for Maldives and Thailand. These DMCs were represented at the joint ADB-Global Forum Seminar on Beneficial Ownership and Assessors Training in October 2018 (see Output 4 below), where delegates had an opportunity to meet with ADB to discuss their needs and identify next steps for the implementation of the Action Plans.

Output 3: Regional high-level policy dialogue to raise awareness conducted and commitment to implement identified measures obtained.

ADB is working closely with the OECD and Global Forum to develop operational frameworks for collaborating in-country TA and regional trainings under RETA 9433. An agreed operational framework was reached with the Global Forum in February 2018, for tax transparency and EOI-related activities. It is expected that a similar framework for BEPS-related activities will be agreed by the end of 2018 with the OECD''s Centre for Tax Policy and Administration (CTPA).

ADB is also engaging with regional associations of tax administration bodies to promote further regional cooperation. In April 2018, ADB co-sponsored a 'Last Mile Training Seminar for Pacific Island Countries, in collaboration with PITAA and the Global Forum (see Output 4 below).

Experience shows that obtaining new commitments to the standards and maintaining the resolve to carry these through often requires direct interaction at both the operational and policy levels, such as through meetings, presentations, seminars, etc. ADB is currently planning to host a Ministerial Conference in conjunction with the OECD and Global Forum in 2019. The conference is expected to raise awareness and generate support for commitment to tax transparency and the BEPS minimum standards.

Output 4: Skills development through training workshops, conferences, and seminars conducted in-country and regionally; and relevant manuals, handbooks and/or e-learning modules produced.

To date, ADB co-hosted 2 regional events in April and October 2018 and contributed to 3 additional regional events as speaker/panellist in July and September 2018. ADB''s participation in these events was critical to increase DMCs' awareness of ADB's tax integrity initiatives and concrete efforts to support capacity building and domestic resource mobilization in the Asia-Pacific Region. ADB consultants also held bilateral meetings with 16 DMCs' tax officials, mainly at the margins of these regional events. In November, ADB will attend a BEPS Workshop as speaker/panelist and the Global Forum Plenary meeting as observer, both during the month of November.

ADB plans to work closely with the OECD and Global Forum for the development of handbooks and e-learning modules for tax officials from DMCs. ADB is currently focusing on the development of 3 knowledge products.

Geographical Location
Cambodia - Nation-wide; Thailand - Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples

Stakeholder Communication, Participation, and Consultation

During Project Design
During Project Implementation

Business Opportunities

Consulting Services
The consultants will be engaged by ADB in accordance with the ADB Procurement Policy (2017, as amended from time to time) and the associated PAIs/TA Staff Instructions.

Contact

Responsible ADB Officer
Meyer-Nandi, Sathi
Responsible ADB Department
Office of Anticorruption and Integrity
Responsible ADB Division
Prevention and Compliance Division (AIPD)
Executing Agencies
Asian Development Bank

Timetable

Concept Clearance
28 Sep 2017
Fact Finding
01 Sep 2017 to 30 Sep 2017
MRM
-
Approval
05 Dec 2017
Last Review Mission
-
Last PDS Update
08 Nov 2018

Funding

TA 9433-REG

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
05 Dec 2017 - 05 Dec 2017 31 Jan 2021 31 Dec 2024 -
Financing Plan/TA Utilization
ADB Cofinancing Counterpart Total
Gov Beneficiaries Project Sponsor Others
5,000,000.00 0.00 0.00 0.00 0.00 0.00 5,000,000.00
Cumulative Disbursements
Date Amount
06 Dec 2023 2,485,866.87

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Title Document Type Document Date
Enhancing Tax Transparency of ADB Developing Member Countries: Technical Assistance Report Technical Assistance Reports Dec 2017

Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

Title Document Type Document Date
Enhancing Tax Transparency in Asia and the Pacific Brochures and Flyers May 2023

The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

  • 22 Sep 2021 | Video

    Strengthening Tax Policy and Enhancing Tax Transparency

    This video introduces the concept of base erosion and profit shifting and showcases how ADB's Office of Anticorruption and Integrity promotes international tax transparency and domestic resource mobilization.

Tenders

Tender Title Type Status Posting Date Deadline
RETA Planner, Facilitator, Report Writer Individual - Consulting Closed
Tax Administration Specialist Individual - Consulting Closed
National Tax Management Consultant (51320-001) Individual - Consulting Closed
RETA Planner Individual - Consulting Closed
International Tax Administration Specialist Individual - Consulting Closed
BEPS Specialist Individual - Consulting Closed
BEPS Specialist Individual - Consulting Closed
BEPS Specialist Individual - Consulting Closed
Program Administration and International Tax Knowledge Coordination Individual - Consulting Closed
National Tax Management Consultant Individual - Consulting Closed
Exchange of Information Knowledge Product Consultant Individual - Consulting Closed
Base Erosion and Profit Shifting Knowledge Product Consultant Individual - Consulting Closed
International Taxation Specialist and Team Leader Individual - Consulting Closed
Enhancing Tax Transparency of ADB Developing Member Countries Individual - Consulting Closed
Tax Administration Specialist Individual - Consulting Closed
National Tax Management Consultant Individual - Consulting Closed
Program Administration and International Tax Knowledge Coordination Individual - Consulting Closed
Beneficial Ownership Expert Individual - Consulting Closed
Program Administration and International Tax Knowledge Coordination Individual - Consulting Closed
BEPS Specialist Individual - Consulting Closed
International Tax Administration Specialist - Enhancing Tax Transparency of ADB Developing Member Countries Individual - Consulting Closed
Information Security Management (ISM) Consultant - Enhancing Tax Transparency of ADB Developing Member Countries Individual - Consulting Closed
Knowledge Coordination and Events Consultant - Enhancing Tax Transparency of ADB Developing Member Countries Individual - Consulting Closed
International Taxation Specialist and Team Leader - Enhancing Tax Transparency of ADB Developing Member Countries Individual - Consulting Closed

Contracts Awarded

No contracts awarded for this project were found

Procurement Plan

None currently available.