Fostering responsible tax behaviour and transparency has become an international priority to enhance domestic revenue mobilisation in developing and emerging markets, which is one of the key challenges to achieve the Sustainable Development Goals (SDGs).
As a responsible impact investor, SIFEM recognises that Development Finance Institutions (DFIs) have an important role to play in encouraging financial intermediaries and their clients to respect their share of the “social contract”, namely, to comply with tax laws and to refrain from engaging in inappropriate and artificial, but nevertheless legal, shifting of taxable profits from the developing countries in which they operate. SIFEM recognises that a holistic approach is needed when it comes to responsible tax practices, in line with the policy guidelines approved by all European Development Finance Institutions.
The SIFEM Responsible Tax Policy describes SIFEM’s approach to responsible tax matters, with reference to the instruments promoted inter alia by the Organisation for Economic Cooperation and Development (OECD). It is aligned with the policy principles approved by all members of the Association of European Development Finance Institutions (EDFI).