With the outbreak of the pandemic, fiscal balances in Latin America and the Caribbean (LAC) deteriorated and public debt increased significantly. When combined with the expected slowness of economic recovery, this will put significant pressure on the sustainability of public finances for countries in the region. Given this scenario, these countries urgently need to develop and … [Read more...] about Latin American and Caribbean countries must adopt a pro-growth fiscal strategy to avoid falling into a debt trap
Taxes
Now it is the time to Foster Labor Formalization in Latin America and the Caribbean
There is an urgent need to reduce labor informality to encourage inclusive growth after the pandemic is over in Latin America and the Caribbean (LAC). Labor formality boosts government revenue and targeting of transfers, increasing productivity and curtailing poverty. Given that the region has one of the highest labor informality levels in the world, targeting informality is … [Read more...] about Now it is the time to Foster Labor Formalization in Latin America and the Caribbean
Winds of Change: An Opportunity to Reform Tax Administration in the Caribbean
For many countries in the Caribbean region, tax policy and tax administration reforms have been a long overdue task. Given the current situation worldwide, the Caribbean countries are now more than ever faced with the critical need to improve their capacity to collect and manage revenues. Achieving this will require the adoption of more efficient and modern institutional … [Read more...] about Winds of Change: An Opportunity to Reform Tax Administration in the Caribbean
Tax amnesties in times of COVID: Exceptional measures in exceptional times
Some countries in Latin America and the Caribbean (LAC) are exploring a variety of options in their attempt to collect additional tax revenues to confront the COVID-19 emergency. With a somber forecast ahead, the region´s GDP may contract up to 6% while the fiscal deficit can climb up to 8% by the end of 2020. In this scenario, tax amnesties emerge as a way of generating … [Read more...] about Tax amnesties in times of COVID: Exceptional measures in exceptional times
Access to financial information: a pillar of tax transparency and the fight against fraud
In memory of Francisco Abea Tax administrations, given the nature of their functions, require access to information held by the financial system. Ensuring tax compliance without knowing actual financial flows generates "short-sighted" tax administrations. This motivates them to implement unorthodox procedures to indirectly access information to deploy controls, taxes on … [Read more...] about Access to financial information: a pillar of tax transparency and the fight against fraud