UNDP and OECD bolster tax audit capacities through the Tax Inspectors Without Borders Programme

February 5, 2024
Participants to a comprehensive two-day training session on the OECD Transfer Pricing Guidelines for Multinational Enterprises organised with the collaboration of UNDP Seychelles

Participants to the comprehensive two-day training session on the OECD Transfer Pricing Guidelines for Multinational Enterprises organized in collaboration of the United Nations Development Programme in Seychelles

UNDP Seychelles

Domestic Revenue Mobilisation is Key for the Expansion of Fiscal Space 

For Small Island Developing States like the Seychelles, robust domestic resource mobilization is key to enabling long-term economic growth and achieving the Sustainable Development Goals. The effective capture and utilization of tax revenue plays a significant role in expanding fiscal space to finance capital development and other needs. 

Capacity Development through South-South Collaboration 

The collaboration between the United Nations Development Programme (UNDP) and the Organization for Economic Co-operation and Development (OECD) is helping to bring about positive change in Seychelles through the implementation of the Tax Inspectors Without Borders Programme (TIWB). This groundbreaking initiative is designed to offer crucial technical support to the Seychelles Revenue Commission (SRC). The heart of the program involves embedding expert auditors from developing countries within tax administrations, providing practical assistance for ongoing tax audits, and addressing international tax issues faced by local tax officials.

In the ongoing program, the Government of India has demonstrated its commitment to south-south collaboration by actively lending support to the Seychelles. A Commissioner of Income Tax from the Indian Revenue Service has been appointed to provide technical assistance.  In January 2024, the Commissioner concluded an impactful in-country mission, focusing on capacity development for audits for transfer pricing audits. The mission included a comprehensive two-day training session on the OECD Transfer Pricing Guidelines for Multinational Enterprises. The primary goal was to deepen participants' understanding of transfer pricing methodologies used in evaluating company transactions. The training also provided participants from the audit and risk intelligence departments with practical insights. The mission also facilitated high-level discussions with the Minister of Finance, National Planning, and Trade, and the senior management at the SRC. These interactions served as valuable opportunities to review the ongoing initiatives and priorities outlined by the SRC for 2024. 

The TIWB programme aligns with the UNDP support package on development finance, contributing to the ongoing efforts to develop the Integrated National Financing Framework. UNDP’s support, funded by the Tax for SDGs Programme, follows on the Country Engagement Plan for Seychelles. Our future strategy and policy advice will also be aligned to the recently completed Development Finance Assessment for Seychelles, which outlines short- to medium-term action areas for advancing the national development finance.

What Lies Ahead?

As Seychelles prepares for its upcoming National Development Strategy (NDS 2024-2028), the TIWB Programme can be a key contributor in providing sustained support for scaling-up innovative development finance. Seychelles has defined a clear pathway to financial sustainability by continuing to prioritize domestic resource mobilization. The TIWB program is set to play a pivotal role in contributing to this goal, with the program set to extend to areas such as international tax and the exchange of information.

Since its inception, the TIWB Program has successfully supported over 100 countries and jurisdictions through targeted tax audit assistance programs. This initiative reflects a collective effort to empower developing nations in enhancing their tax administration capacities, thereby contributing to sustainable economic development.

The recent programme results underscore the program's effectiveness in building local capacities and fostering international cooperation in the realm of tax administration, laying a solid foundation for Seychelles' economic growth in the years to come.

Stay tuned as we delve deeper into the impact and potential of the TIWB Programme in Seychelles' journey towards a sustainable future!


Learn more about the TIWB program here: https://www.tiwb.org/