Avatar Technologies in line with IMF approach on taxation in developing countries
10 September 2015
The International Monetary Fund (IMF) encourages developing and emerging countries to implement ways of increasing their tax revenues, in order to support their development. The IMF’s Managing Director, Christine Lagarde, pointed out that in about half of all developing countries, tax ratios were below 15% of the GDP, compared with an average of 34% in OECD countries.
Mrs. Lagarde also stated that the implementation of “simple, broad-based and fair” tax systems could help improve these ratios. To achieve this, the IMF proposes to help countries mobilize domestic revenues to tackle poverty, among other issues, and to drive sustainable development, through Fund-supported programs.
Enabling emerging and developing countries to leverage their own resources ‒ more precisely their tax resources ‒ to finance development is at the core of Avatar Technologies’ activities. Avatar Technologies was created in 2011 by Global Voice Group (GVG). The company designs, develops and delivers solutions that create a tax compliance-enabling environment in emerging and developing countries.
Avatar’s flagship solution, Electronic Fiscal Declaration (EFD), optimizes tax compliance and collection, thus leading to an increase in the government’s tax revenue. By doing so, it provides the governments with the financial means to create development projects that match their needs and priorities.
As such, Avatar’s EFD solution falls in with the IMF’s approach to helping emerging and developing countries attain sustainable growth, with the advantage that it does not involve any external funding and thus promotes the countries’ financial autonomy.