Forum highlights need for cooperation to fight tax evasion
SEOUL, June 4 (Yonhap) — South Korea and the World Bank kicked off an international tax conference in Seoul on Thursday to highlight the need for closer international cooperation to effectively deal with corporate tax evaders, organizers said.
The two-day gathering is designed to stress the growing importance of tax policies in building up a country’s growth potential and benefits that can be had if tax authorities work with each other to carry out reforms and remove loopholes, Seoul’s finance ministry said.
At the conference, South Korea and the World Bank elaborated on some tax reform measures they have undertaken in the past to increase tax revenue without hurting growth, with the International Monetary Fund (IMF) recommending the need for a tax policy that is flexible and can promote growth.
In an opening speech, Moon Chang-yong, South Korea’s deputy finance minister of tax and customs, said that sharing knowledge and experience is a win-win strategy that can contribute to better fiscal balance as well as stimulating the economy.
While tax reforms are primarily carried out at the national level, there is a need for greater international sharing and cooperation.
“In particular, a large number of multinational enterprises have been taking advantage of differences in tax laws of each country to shift profits to non-tax or low-tax jurisdictions,” Moon said.
Under such circumstances, improving the tax system of a single nation will not prevent cases of offshore tax evasion, he said.
The conference has brought together some 70 tax officials from the World Bank, the IMF, the Organization for Economic Cooperation and Development, Vietnam, Thailand and other Asian countries.
