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IMF Seminars, January 1, 1901

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The IMF and Japanese Ministry of Finance co-hosted the Sixth IMF-Japan High-Level Tax Conference for Asian Countries on April 7 to 9, 2015, in Tokyo.
The workshop was financed by the Japan Administered Account for Selected IMF Activities (JSA).
The conference convened senior officials, academics, and practitioners to discuss tax policy and administration challenges across Asia, with sessions on tax incentives, tax compliance, TADAT, wealth-related taxes, revenue administration reform implementation, international taxation (including G20-OECD BEPS), and tax treaties.

Key analytical point: Tax incentives aiming to attract foreign direct investments (FDI) often led to harmful tax competition that reduces tax revenue without creating offsetting benefits to the host country.
Session objectives:
- Discuss options for ensuring that any tax incentives offered are efficient and effective.
- Explore country case studies from participating governments and institutions.
Presenters included:
- Mr. Michael Keen, Deputy Director, FAD, IMF
- Professor Motohiro Sato, Hitotsubashi University
- Professor Naoyuki Yoshino, Dean, and Mr. Victor Pontines, Asian Development Bank Institute
- Mr. Astera Primanto Bhakti, Assistant Minister for State Revenue, MOF, Indonesia
- Mr. Chudamani Sharma, Director General, Inland Revenue Department, Nepal
- Dr. Mahbubur Rahman, Member, National Board of Revenue, Bangladesh
Panel moderator: Ms. Soledad Emilia Cruz, Assistant Secretary, Department of Finance, the Philippines

Compliance session focus:
- Measurement and analysis of ‘compliance gaps.’
- Evidence on drivers of compliance.
- Instruments used to improve compliance, including electronic fiscal devices and lotteries.
- Exchange of information.
Presenters included Mr. Michael Keen and Ms. Debra Adams (FAD, IMF), Mr. Masaaki Kaizuka (NTA, Japan), and Ms. Quek Puay Kiang (Inland Revenue Authority of Singapore).
Moderator: Mr. Richard Wong, Commissioner, Inland Revenue Department, Hong Kong
TADAT (Tax Administration Diagnostic Assessment Tool):
- Purpose: Help revenue administrations identify strengths and weaknesses in performance as a preliminary to improvement.
- Intended full launch: November 2015.
- The session sought participant input to shape TADAT and assess its potential benefits.
- Presentation by Mr. Michael Keen, FAD, IMF

Analytical scope:
- Wide range of taxes related to wealth: taxes on holding and transfer, inheritance and gift taxes, and property taxes.
- Discussion of pros, cons and practicalities; presentation of practices in the region; exploration of case studies and lessons.
Presenters included Mr. Michael Keen (FAD, IMF), Mr. Kiyoshi Nakayama (FAD, IMF), Professor Shigeki Morinobu (Chuo University), Ms. Kim Jacinto-Henares (Commissioner, Bureau of Internal Revenue, the Philippines), Mr. Nguyen Van Phung (Vietnam), and Malaysian MOF officials.
Moderator: Dr. Warotai Kosolpisitkul, Director, Tax Policy Bureau, Fiscal Policy Office, MOF, Thailand

Core insight: International technical assistance often focuses on building basic foundations of tax administrations in countries with weak capacity, but traction with reforms is often weak and outcomes could be much stronger.
Presentation focus:
- Requirements for effective management of revenue administration reform programs.
- Lessons from past technical assistance to increase traction and impact at all levels of administrative development.
Presenters included Ms. Debra Adams (FAD, IMF), Dr. Mohd Shukor Mahfar (CEO, Inland Revenue Board, Malaysia), Mr. Awan Nurmawan Nuh (Directorate General of Taxes, Indonesia), Mr. Jinliang Yang (State Administration of Taxation, China), and Ms. Jacinto-Henares (Philippines).
Moderator: Ms. Debra Adams, FAD, IMF

Framing: International taxation is an acute issue for both advanced and developing countries; while developing countries are urged to adopt internationally-agreed rules to address cross-border tax avoidance, it is critical to build an effective tax system and tax administration as a whole.
Session components:
- Updates on G20-OECD work on Base Erosion and Profit Shifting (BEPS).
- Country discussions on challenges in international taxation and capacity-building needs.
Opening and welcome addresses by IMF and MOF officials; presentations by OECD, MOF China, MOF India, and other country revenue authorities.
Moderator for the main panel: Professor Yoshihiro Masui, University of Tokyo
Panel participants included private sector representatives Mr. Ichiro Suzuki (Lixil) and Mr. Mikio Yasutake (Mitsubishi UFJ Financial Group).

Analytical point: The increase in tax treaties involves a trade off between encouraging FDI and the revenue impact of restrictions on source country taxation and treaty shopping.
Session aim: Discuss experiences and evidence on the effects of tax treaties and identify key tax policy considerations when deciding whether to enter a treaty.
Presenters included Mr. Kentaro Ogata (MOF, Japan), Mr. Kiyoshi Nakayama (FAD, IMF), Mr. Wong (Inland Revenue Department, Hong Kong), Mr. Phung (Vietnam), and Mr. Ulziisaikhan Dash (MOF, Mongolia).
Moderator: Dr. Mohd Shukor Mahfar, Inland Revenue Board of Malaysia
Additional participants: Mr. Yuji Miyaki (Asian Development Bank) and Mr. Akira Inubushi (Mitsui & Co. Ltd)

Summing-up and concluding remarks were delivered by Mr. Michael Keen, FAD, IMF.
The conference aggregated practical experiences, country case studies, and IMF/OECD/ADB inputs to inform policy options on tax incentives, compliance, diagnostic tools (TADAT), wealth taxation, administration reform implementation, international taxation, and treaty policy.