The WU Global Tax Policy Center (GTPC) at the Institute for Austrian and International Tax Law at WU Vienna University of Economics and Business launched and ran the Tax and Good Governance Project from 2015-2018.

The project identified links between corruption, the lack of business and political integrity and tax crimes. It promoted the concepts of good tax governance and the importance of a corrupt-free and transparent tax system in achieving economic development. It also covered how law enforcement agencies and tax authorities can cooperate to counter corruption and bribery.

In particular, the project aimed to:

• Identify and mobilise stakeholders in national tax administrations and in the private sector and to set out a research agenda.
• Draft model national tax legislation and international tax agreements to improve the effectiveness of tax administrations in undertaking controls and audits, and to foster better cross-border cooperation between tax authorities.
• Build up institutional capacity in the three focus countries and the other African countries and ensure sustainability by creating a network of “ambassadors” of key institutions in Africa who will be able to disseminate and promote the acquired knowledge on the role of tax authorities in detecting corrupt practices.

Impact: The project established more effective detection tools of illicit financial flows, thereby discouraging businesses and governments from engaging in such schemes. It contributed to a more informed debate on the issue of transfer pricing, with a clearer and acceptable distinction between what is acceptable or unacceptable. It also changed the nature of the dialogue between business and tax administrations, with 3 African countries committing to implementing pilot studies on cooperative compliance.