By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)- The International Monetary Fund (IMF) Tuesday said international tax avoidance and evasion have emerged as major risks to government revenue and as threats to the credibility of tax systems in the eyes of citizens— in both advanced and developing countries.

Christine Lagarde, Managing Director (MD) of the Fund said this at the G-8 Leaders Summit held in Lough Erne, Northern Ireland.

Lagarde said at a time when almost all governments need additional revenues, whether to deal with high post-crisis public debts or to finance critical investments in human development, combating tax evasion and addressing tax avoidance should top the list of potential revenue-raising measures.

“We have worked closely with our member countries—including those in the G-8—along with the Organisation for Economic Cooperation and Development (OECD) and other international institutions, to promote sound fiscal policies globally,” she said.

According to her, taxation regimes and fiscal transparency figure prominently in the IMF’s technical assistance and ongoing economic analysis and policy advice, including measures that promote equitable and efficient tax systems as well as stronger tax administration.

“The G-8 leaders should also be commended for the 10 principles put forward in the Lough Erne Declaration,” Lagarde said.

She affirmed that a commitment to fair taxes, increased transparency, and open trade will support the broader commitment to maintaining sound macroeconomic policies and restoring stronger growth and job creation. “The IMF stands ready to work closely with its member countries— including the G-8— and other multilateral institutions on these important issues and challenges.” She said.