International Monetary Fund. External Relations Dept.
This paper discusses the launch of the Brandt Commission. The paper highlights that during the week of the Annual Meetings of the Board of Governors of the World Bank and the IMF in Washington, D.C. (September 26–30, 1977), Willy Brandt, former Chancellor of the Federal Republic of Germany, announced that he would head an independent commission that would identify “ways of restructuring international relations that would command the widest possible support.” The Commission will have about 15 members, both from developed and developing countries.
“We have tackled difficult problems on which sincere differences of judgment and interest are bound to arise and have reached conclusions on them in the conviction that the world is interdependent and that only concerted action by all countries can achieve lasting benefits for any.” Mr. Denis Healey, the Chairman, in this statement made in September 1978, was referring to the work of the Interim Committee in the preceding year, but, as this article shows, his words could apply to the role of the Committee during the whole of its existence so far.
A well-designed regional tax treaty to which developing countries are signatories will include provisions securing minimum withholding taxes on investment income and technical service fees, a taxing right in respect of capital gains from indirect offshore transfers, and guarding against-treaty shopping. A tax treaty policy framework—national or regional—that specifies the main policy outcomes to be achieved before negotiations commence would enable developing countries with more limited expertise and lower capacity for tax treaty negotiations to avoid concluding problematic tax treaties. This note provides guidance for members of regional economic communities in the developing world on what should and should not be included in a regional tax treaty and how to design on a common tax treaty policy framework for use in negotiations of bilateral tax treaties with nonmembers.