This project contributes to strengthened capacity of developing countries to identify and address the vulnerabilities to aggressive tax avoidance that produce the greatest risks based on the country’s economic circumstances, which would be demonstrated by the application by each country of a risk assessment tool to identify its most significant risks from aggressive tax avoidance. Second, the project assists each country in developing a customized action plan to address those risks. Third, the project provides technical assistance to each target country to support implementation of the action plan.

This project complements recent UN projects that have focused on various aspects of illicit financial flows (IFFs), including measurement, reporting, data and statistical capacity. It does so through close engagement with the target countries to identify the specific tax avoidance structures used by multinational enterprises (MNEs) in those target countries and then assisting them, including through technical assistance, in addressing the related vulnerabilities in their tax policy and administration.

Accordingly, the project also promotes sustainable development by helping to reduce risk and build resilience and preparedness to deal with aggressive tax avoidance from MNEs in developing countries facing different geographic and economic circumstances. The target countries encompass a range of industries and engage with multiple trading partners so that the experience, materials and tools developed during this project will respond to the different challenges faced by a broad range of developing countries.