The Organisation for Economic Cooperation and Development (OECD) today issued a release intended for resource-rich developing countries and the attempts by multinational mining enterprises to avoid taxes through the use of tax incentives.
As noted in the OECD release, many governments of resource-rich developing countries are under pressure to offer tax incentives in order to attract mining investors. However, these incentives may significantly reduce government revenue, especially when investors use them in ways that exceed the tax benefit initially intended by government. The OECD provided a “draft toolkit” prepared by the Intergovernmental Forum on Mining, Minerals, Metals and Sustainable Development (IGF), under a programme of co-operation with the OECD, to help governments anticipate and limit the cost of mining tax incentives. This is part of broader efforts to address some of the challenges developing countries are facing in raising revenue from their mining sectors. Comments are due by 6 July 2018, with the aim of finalising the draft toolkit in the coming months.
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