The Philippines has joined a regional initiative that aims to set tailored solutions to ensure the implementation of tax transparency standards across Asia, the Department of Finance (DOF) said.
Finance Secretary Benjamin E. Diokno said the Philippines has endorsed the Bali Declaration, which calls to enhance the use of tax transparency for sustainable domestic resource mobilization in the region.
Manila’s endorsement of the Bali Declaration effectively made the Philippines the 17th member of Global Forum’s Asia Initiative.
“The Philippines would greatly benefit from joining the Asia Initiative as we will have access to custom-tailored capacity-building activities offered by Asia Initiative partners to promote international tax transparency,” Diokno said in a statement Thursday, Feb. 16.
By joining the Asia Initiative, Diokno said the Philippines reaffirmed its commitment to the full and effective implementation of international tax transparency, as well as to use the full range of administrative cooperation.
As a result of these tax transparency efforts, the Philippines hopes to deter international tax evasion and illicit financial flows, and ultimately raise tax revenues for the country, the finance chief said.
The Asia Initiative, launched in November 2021, aims to support the effective implementation and use of the tax transparency standards to fight tax evasion and other illicit financial flows, helping mobilize domestic resources and develop tax cooperation across the region.
"We are delighted to welcome the Philippines as the latest Asia Initiative member," Sanjay Malhotra, Revenue Secretary of the Ministry of Finance of India, and Suryo Utomo, Director General of the Directorate General of Taxation of Indonesia, Co-Chairs of Asia Initiative.
"The enlargement of the Asia Initiative’s membership highlights the importance given to tax transparency in Asia, and the resolve of governments to come together to fight and prevent tax evasion and avoidance,” they said.
The Global Forum is the leading multilateral body mandated to ensure that jurisdictions around the world adhere to and effectively implement both the exchange of information on request standard and the standard of automatic exchange of financial account information.
The Global Forum also runs an extensive capacity-building program to support its members in implementing the standards and help tax authorities make the best use of cross-border information sharing channels.
As a member of the Asia Initiative, the Philippines will participate in tax transparency activities and may access relevant technical assistance and capacity-building programs.
The Initiative will facilitate the exchange of knowledge and experience among members and advance the development of a regional forum fostering improved collaboration among Asian jurisdictions in the area of tax transparency.
Other members of the Asia Initiative include Armenia, Brunei Darussalam, People’s Republic of China, Hong Kong (China), India, Indonesia, Japan, Kazakhstan, South Korea, Macau (China), Malaysia, Maldives, Mongolia, Pakistan, Singapore, and Thailand.