february 2018

15feb1:30 pm2:30 pmDiamonds: Uncut - The Base Erosion and Profit Shifting ChallengesBy Tax Inspectors Without Borders1:30 pm - 2:30 pm United Nations Headquarters, New YorkEvent Type :Peer Learning Event

Event Details

Diamond producing and exporting countries face acute domestic resource mobilisation (DRM) challenges,
particularly in Africa, on account of particular industry challenges, including tracking and valuation of
diamond production. Accurate valuation of both rough and polished diamonds for export is essential in
ensuring the producing country receives an appropriate share of the final price paid by jewellery buyers,
other intermediaries and ultimately, retail customers. For countries that are dependent on these precious
stones, millions of dollars are at stake when assessing their value for tax purposes and this often represents
a significant percentage of the tax base of diamond rich developing countries.

The complexity of the industry, together with tax base erosion and profit shifting issues, pose major
information gaps and uncertainty for tax administrations in developing countries where diamonds are
mined. Tax Inspectors Without Borders (TIWB) – an OECD/UNDP joint initiative working closely in cooperation
with Africa Tax Administration Forum (ATAF) in Africa is providing hands on tax audit support –
matching up tax audit experts with industry experts, including diamond industry specialists, bringing in that
combination of skills to assist African countries harness their tax mobilisation capacity in this sector. TIWB’s
objectives are to equip tax officials with the tools needed to tax local economic activity and value creation
in accordance with international standards and principles, and to help create a predictable tax environment
for taxpayers.

This TIWB learning event is an opportunity to learn more about a complex DRM challenge faced by many
countries and to discuss what more can be done to help. A panel of leading experts will discuss the topic.