Financial Transparency Coalition

A June 2009 Norwegian Commission on Capital Flight from Developing Countries report on illicit financial flows from developing countries and tax havens and put forward recommendations for reform efforts to be considered by the Norwegian Government.

Drawing on research from Task Force members Global Financial Integrity (GFI) and Tax Justice Network (TJN) to define the scope and consequences of illicit monetary outflows from developing countries, the report concludes that illicit outflows exceed development finance inflows.

The Commission also makes recommendations for reform measures including:

• Considering whether Norwegian multinational companies should be required to submit more detailed annual statements,
• Improving the rules for transfer pricing,
• Establishing a Norwegian centre of expertise on tax evasion,
• Developing networks with a view to increasing international pressure,
• Changing tax agreements to ensure that it is a company’s real business that decides in which country it is subject to taxation,
• Negotiating an international convention to combat the harmful structures in tax havens,
• Supporting efforts to develop new international standards for sound taxation practices under the auspices of the Organization for Economic Co-operation and Development (OECD).