Maldives: Maldives joins Asia Initiative
Maldives has put extensive efforts over the years to implement and adhere to the international best practices and standards. Having joined the Global Forum and Inclusive Framework, Maldives has given its commitment to implement the standard on transparency and exchange of information on request. The impact of tax evasion and avoidance is so far reaching for one country to tackle it alone and can only be achieved through parallel and consistent collaboration between tax authorities. We need transparent tax practices implemented in all the countries to yield the best outcome from this commitment. Regional efforts play a significant role in providing a common platform for countries to work together.
Asia Initiative on Tax Transparency:
The Asia Initiative on tax transparency was launched on 17 November 2021 to give Asian countries a regional voice, in recognition of the important role of regional initiatives in promoting and advancing the tax transparency agenda. This project was initiated by the Indonesian Prime minister, Sri Mulyani Indrawati and the president of Asian Development Bank (ADB) supported the launch of the Initiative. This initiative is partnered with Study Group on Asia-Pacific Tax Administration and Research (SGATAR), to conduct workgroups and share knowledge between the nations.
Asia region consists mostly of developing and emerging economies and Asia Initiative would enable countries to identify tailored solutions to effectively implement and use the tax transparency tools.
Objectives:
The objectives of this initiative includes, supporting the integration of international tax cooperation matters in domestic resource mobilization and recovery strategies, harnessing the region's potential through multilateral cooperation, and facilitating knowledge sharing among Asian countries. Additionally, raising awareness on the importance of tax transparency to combat tax evasion and other illicit financial flows and maximize the implementation and effective use of the tax transparency standards and raise resources for development and sustainable growth was seen as one of the main objectives.
Joining this initiative allows Maldives to support the integration of international tax co-operation matters in the domestic resource mobilization and recovery strategies while fostering the use of all forms of administrative assistance allowed by tax treaties. This will allow small nations such as Maldives to respond to specific needs in terms of co-operating with the countries in the region and capacity building.
Signing the Bali declaration:
Maldives joined the initiative by remitting the signed declaration for Asia Initiative in Bali on July 14, 2022. Alongside, thirteen other jurisdictions, namely Brunei Darussalam, China, Hong Kong (SAR), India, Indonesia, Japan, Korea (Republic), Macau (SAR), Malaysia, Singapore, Mongolia, Pakistan and Thailand signed the declaration. Several partner organizations such as Asian Development Bank (ADB), International Finance Corporation (IFC), Study Group on Asia-Pacific Tax Administration and Research (SGATAR), and the World Bank also expressed their supports to the Asia Initiative.
By joining this initiative, Maldives hopes to ultimately enhance domestic resource mobilization to generate much-needed revenue and ensure that we are better equipped to exploit the latest improvements in global transparency. Similarly, being a member of a regional initiative can further promote transparency and exchange of information while contributing to a sustainable post-pandemic recovery and a stronger cooperation to address tax evasion and other illicit financial flows.
Conclusion:
The Asia Initiative is an integral step taken to advance the transparency agenda and support the post-pandemic recovery efforts. By signing the Bali Declaration, Maldives has given the political impetus along with the other Asian leaders for accelerating tax transparency agenda in the Asian region. Maldives aims to be an integral part of the regional development this initiative intent to achieve.