AU Permanent Mission in Brussels Workshop - Assessing the Progress and Challenges in the Implementation of Addis Ababa Agenda for Action (AAAA) Wednesday, 21 September, 2016 Luckystar Miyandazi & Faten Aggad ECDPM

1. Tax, Good governance and the
problem of illicit financial flows
from Africa
AU PERMANENT MISSION IN BRUSSELS MISSION PERMANENTE A BRUXELLES
Workshop
ASSESSING THE PROGRESS AND CHALLENGES IN THE IMPLEMENTATION OF ADDIS ABABA AGENDA
FOR ACTION (AAAA)
Wednesday, 21 September, 2016
Luckystar Miyandazi & Faten Aggad
ECDPM

2. • Framing the IFFs debate: the PCSD agenda
• Spotlight on illicit financial flows (IFFs)
• On-going Efforts to Curb IFFs
• Areas of potential Cooperation
• Conclusion
• Q&A
Structure
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3. Spotlight on illicit financial flows (IFFs)
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Source: TrustAfrica infographics on “track it, stop it and get it” Report of the
High-Level. Panel on Illicit Financial Flows from Africa, Commissioned by the
AU/ECA Conference of Ministers of Finance, Planning and Economic
Development in 2015.

4. ▪ National and Regional Efforts:
▪ AU: The adoption of the HLP Report on IFFs as a declaration during the
24th AU Summit and AAAA para 24 on IFFs
▪ AU Convention on Preventing and Combating Corruption
▪ APRM (African Peer Review Mechanism)
▪ Efforts to recover frozen assets (STAR)
▪ GIABA: Inter-Governmental Action Group against Money Laundering in
West Africa (GIABA)
On-going Efforts to Curb IFFs-Africa
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5. • Anti-Tax Avoidance Package adopted by the European Commission on
28 January 2016
-agreement for the automatic exchange of information on country-by-
country reports (CbCR) of multinational companies, subject to UK
scrutiny
-agreement by Member States on their general approach for far-reaching
new rules to eliminate the most common corporate tax avoidance
practices. 21 June 2016
-agreement by Member States on the automatic exchange of information
on cross-border tax rulings, just seven months after the presentation
of the Commission's ambitious proposal on the subject.
-Platform for Tax Good Governance (Includes non-government members)
EU & Global Efforts
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6. • The Global Forum on Transparency and Exchange of Information for
Tax Purposes (OECD);
• Multilateral Convention on Mutual Administrative Assistance in Tax
Matters (OECD);
• Extractive Industries Transparency Initiative;
• Article 1504 of the Dodd-Frank Act (United States of America);
• Foreign Account Tax Compliance Act (United States of America);
• Public register (United Kingdom);
• G20 instigated base erosion and profit shifting (BEPS) Action plan led
by OECD process
• Calls for UN like global body to deal with tax matters-Para 29
Global Efforts
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7. • One key principle that is emerging with regard to tackling
IFFs at the global level is improving transparency;
I.automatic exchange of information
II.country-by-country and project-by-project reporting;
III.public registries of beneficial ownership
Areas of Cooperation
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8. Can PCSD serve as a framework for
dialogue on approaches to curb
IFFs?

9. • Goal 16.4: “by 2030 significantly reduce illicit financial and arms
flows, strengthen recovery and return stolen assets, and combat all
forms of organised crime”
• Goal 17.14: “enhance policy coherence for sustainable
development” – One of the key innovations of the SDGs agenda
• What is PCSD? “ An Approach and policy tool to integrate the
economic, social, environmental and governance dimensions of
sustainable development at all stages of domestic and
international policy making… As policy tool, PCSD aims to increase
governments’ capacities to identify synergies, consider trade-offs
between multiple objectives – for example between economic
growth, environmental protection and reduction of carbon
emissions – and address potential spillovers of domestic policies”
The SDGs and the PCSD Agenda

11. Framing the IFFs debate: the PCSD agenda
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12. Sectors of attention to tackle IFFs

13. Linkages between interventions

14. • EU has a strong track record championing Policy
Coherence for Development. Anticipated strong
commitment to PCSD
• Key opportunities for engagement around policy
framework: the revision of the European
Consensus on Development
Opportunities for engagement

15. Thank you!
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Faten Aggad-Clerx- Head of Programme Africa’s
Change Dynamics
Luckystar Miyandazi- Policy Officer Africa's Change
Dynamics Programme
E-mail fa@ecdpm.org
lmi@ecdpm.org
Twitter
@FatenClerx
@Lustarnde
Further info
www.ecdpm.org
http://ecdpm.org/topics/taxation-development-finance
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