UK aid’s contribution to tackling tax avoidance and evasion

Our approach

International companies operating in developing countries have developed sophisticated strategies to avoid paying tax, taking advantage of loopholes in the global financial system. Cross-border tax avoidance and tax evasion deprive developing countries of resources that could be invested in public services and development programmes.

This learning review explores how the Department for International Development (DFID) uses its influence across the UK government and internationally to address this issue. It explores commitments made by the UK and other countries at the Third International Conference on Financing for Development to support revenue raising in developing countries’ through both domestic and international tax reforms. It also provided the opportunity to explore how the UK government ensures policy coherence in an area in which both domestic and developing countries’ interests are at stake.

Review questions

1. Relevance: How relevant is DFID’s approach to addressing the global issues of cross-border tax avoidance and tax evasion?
2. Effectiveness: How effectively has DFID contributed to addressing the global issues of cross-border tax avoidance and tax evasion in a way that benefits developing countries?
3. Use of evidence and learning: To what extent is DFID generating and applying evidence and learning to support its approach to addressing the global issues of cross-border tax avoidance and tax evasion?