Raising Revenue Right : A Roadmap for Domestic Resource Mobilization - Chapter 4 : Transparency and Taxation of Top Economic Actors

Overview & Synopsis

This chapter examines the taxation of multinational enterprises (MNEs) and high-net-worth individuals (HNWIs), whose growing economic importance, mobility, and complex organizational structures present significant challenges for revenue mobilization, particularly in emerging market and developing economies (EMDEs). It explores how globalization has increased opportunities for profit shifting, tax avoidance, and preferential tax treatment, often undermining revenue collection, equity, and public trust in tax systems. The chapter highlights recent advances in tax transparency and international cooperation, summarized through the ABCD framework: Automatic Exchange of Financial Information, Beneficial Ownership Registries, Country-by-Country Reporting, and Digital Sector Taxation. These innovations are improving the visibility of income, wealth, and cross-border activities, enabling more effective taxation of top economic actors. The chapter also discusses future directions for personal and corporate income tax reform, emphasizing broader tax bases, stronger progressivity, reduced tax distortions, and improved coordination between tax instruments to enhance both efficiency and fairness while strengthening domestic revenue mobilization.