CONCEPT NOTE & AGENDA

DFIs and Responsible Tax Seminar:

Development Finance Institutions role in promoting responsible taxation

When: 23 September 2015 Where: Entebbe, Uganda. Background Developing countries continue to suffer from tax evasion and aggressive tax planning from multinational companies and struggle to mobilise much needed domestic resources to finance basic services. Tax and domestic resource mobilisation have been a central part of the discussions towards and during the 3rd financing for development conference held in Addis Ababa in July 2015 and is included as a specific indicator in the new Sustainable Development Goals. Fiscal policy is also increasingly being recognised as part and parcel of the governments responsibility to realise human rights. Harmful tax practices jeopardize this. Meanwhile, the private sector and the ability to leverage funds for development from the private sector have also taken central place in the new development framework. Here development finance institutions multilateral and bilateral have a key role. More responsible taxation practices by companies and private investors would increase developing countries revenue collection, which could then be deployed to finance social needs and development goals such as quality education and basic healthcare for all. Meanwhile, more and more funds are channelled through development banks and funds to leverage finances from the private sector. Though this without ensuring that the private sector upholds the highest standards of responsible tax practices. Given the harmful impacts of tax dodging on developing countries and the fight against tax avoidance and evasion finally gaining momentum, Development Finance Institutions (DFIs) should be expected to be at the forefront with safeguards and policies to ensure responsible tax policies and practice from their partners in the private sector and their projects. Civil society groups have called on DFIs several times to adopt and enforce progressive policies and abide to the highest level of corporate transparency. In Europe the debate with some DFIs, such as BIO, IFU and Swedfund, have undertaken notable steps towards responsible taxation and transparency, others are lagging behind notably the multilateral DFIs. General Objective The seminar co-organised by TJN-A, IBIS and SEATINI will serve the purpose of raising awareness of the potential role for multilateral DFIs as agents for change in the fight for more domestic resource mobilisation through responsible tax policies of multinational enterprises. It will also serve as a first step

in a substantive dialogue between civil society organisations and regional DFIs on how to promote and mainstream responsible taxation practices. Expected participants (approx. 50 participants):

- TJN-A, IBIS, network members and partners from North (Eurodad) and South (SEATINI+Latindadd)

- DFI representatives, including multilateral, regional and bilateral institutions: o IFC, EIB, EBRD, IABD, AfDB, and selected bilateral DFIs

- Donor agencies relevant in the region - Decision makers from the region notably finance ministers

Methodology:

- A seminar will be held on the third day of the Pan African Conference on IFFs and Taxation and attract the audience attending this annual conference.

o A full day seminar will be held constituted of CSO members, DFI representatives and decision makers from the region e.g. finance ministers, tax administrators, etc.

Possible issues on the agenda:

- Introduction: Latest policy development at global, regional and national level on responsible taxation, i.e. UN, OECD, G20, developments at the Africa and EU level.

- Presentation by multilateral DFIs on how they are incorporating this enhanced focus on responsible taxation or how they, more broadly, are responding to the challenge of fighting aggressive tax planning.

- Presentation by NGO/CSO on further suggestions for DFI reform to become leaders in this area and achieve better development results through more responsible tax policies

- Comments from relevant donors on their approach to this agenda.

Agenda

8:30-9:00 Registration SEATINI

9:00 9:10 Welcome and Introduction

Organisers (TJN-A/SEATINI/IBIS)

9:10 10:00 Opening ceremony tax and development - Opening remarks on outcome from Addis and the

role of responsible tax for development - Finishes by the Minister officially opening the

conference - Obj.: underline the central role responsible tax

and domestic resource mobilization has in development globally and in Africa

TJN-Africa/SEATINI AfDB Ministry of Finance/ Tax (EAC, Uganda)

Moderator - SEATINI

10:0010:20 Tea break

10:20 12:00

The role of DFIs in promoting this new development agenda where responsible tax is a central part in sustainable investments:

- Presentation of research on responsible tax policies in multilateral DFIs

- Interventions from DFIs on how they are approaching tax

- Good practices in DFIs in Europe - Good practices recommendations on responsible

tax and finance from CSOs Moderator Eurodad

TJN-A IBIS Swedfund or IFU or FMO WBG/IFC

12:00-13:00 Lunch

13:00 14:30

Practical cases, human impacts, recommendations for the actors involved:

- Case of Latin America ( Yanacocha , Peru) - Case Africa ( Glencore, Zambia)

Moderator IBIS

LATINDADD CTPD/TJN-Africa EIB IFC/WBG

14:30-15:00 Tea break

15:00-16:30 Next steps views on how the different actors will commit to taking more steps to integrate responsible tax in their policies:

- Responses to the day - Outlining new initiatives or commitments - Underlining importance of the priority of

responsible tax policies -

Moderator Savior, TJN Africa

AfDB/WBG Regional development bank Bilateral DFI Bilateral donor Norway or Denmark - tbc Regional tax administration SEATINI/IBIS