The annual gathering of the OECD Tax Authorities Forum does not usually dominate front pages, yet this year’s November Plenary in Cape Town carried an unusually direct tone. Forty-nine tax administrations spent three days confronting a common challenge: raise more revenue while easing the strain on taxpayers. The arithmetic was striking. Narrow the collective tax gap by a single percentage point, and roughly €150 billion appears, money that could relieve budgets under significant pressure. This is where the warning lies, if the Governments do not fight this factor, many future public investments will be lost.
Rather than hiding behind abstract policies, delegates focused on steps that can actually work. The call was for clearer rules, better tools, and steadier administration. Central to this was the long-standing Tax Administration 3.0 vision, which aims to build compliance into the ordinary systems taxpayers already use. The discussion repeatedly returned to practical interventions that reduce errors before they happen and help businesses meet their obligations without complicated detours.
5 Key Takeaways
- Tax administrations are prioritizing revenue gains while easing burdens on taxpayers. The Cape Town Plenary placed direct focus on shrinking tax gaps, noting that even a 1% improvement could generate around €150 billion. Delegates moved away from abstract policy debates and rallied around practical measures that simplify compliance and reduce avoidable errors.
- Real-time reporting and AI are moving from theory to full-scale adoption. Members endorsed broader pilots for real-time information sharing and acknowledged that AI is already assisting audits and taxpayer services. However, they stressed that leadership, not technology, must set direction, keeping human judgment at the core of administrative decisions.
- The Global Minimum Tax remains a central challenge, but collaboration is easing the strain. Through the Amsterdam Dialogue, jurisdictions, businesses, and academics are working together to streamline upfront compliance and align risk-assessment methods. The shared aim is predictability: consistent rules that reduce disputes and administrative overload.
- Tax certainty is becoming a strategic priority for restoring trust. Delegates emphasized the need for clearer processes, better dispute-prevention tools, and support for jurisdictions with weaker capacity. Strengthening programs such as ICAP reflects a wider push to rebuild trust and encourage voluntary compliance across borders.
- Capacity building and cross-border cooperation are gaining momentum. The Plenary highlighted support for developing administrations, especially through initiatives like Tax Inspectors Without Borders. Strengthening domestic revenue systems is now seen as a shared global interest as tax crime grows more complex and digital transactions proliferate.
Real-Time Information and AI Take Center Stage
One of the firmest signals out of Cape Town was the renewed commitment to real-time information sharing. Several members already rely on live reporting systems, and the Plenary endorsed further pilots to extend this approach. Delegates encouraged one another to contribute staff, technical insights, and operational capacity. The shift now appears to be from experiment to broader execution.
Artificial intelligence also claimed a prominent spot on the agenda. Delegations acknowledged the growing use of AI tools in audit selection, service delivery, and administrative support, while stressing that leadership, not technology, must shape strategy. The need for responsible governance resonated strongly, especially as tax administrations compare experiences and debate appropriate oversight. The consensus was apparent: AI can support administrative work, but judgment must stay firmly human.
OECD Tax Authorities Forum: Making Tax Less Painful
Much of the Plenary revolved around the ongoing implementation of the Global Minimum Tax, a topic that has tested both patience and administrative capacity. Through the Amsterdam Dialogue, members have brought together tax authorities, academics, and businesses to smooth out the practical challenges. Delegates pledged continued work on simplifying upfront compliance and reducing the administrative load on companies facing the new rules.
Risk assessment formed the second pillar of the discussion. Members are developing shared methods to detect trouble spots early, sidestep recurring issues, and avoid unnecessary disputes. Predictability was the word many returned to, companies want it, administrations need it, and the OECD Tax Authorities Forum is trying to supply it through consistent approaches across jurisdictions.
The Push for Tax Certainty and Fairness
Beyond the technical debate, tax certainty emerged as a defining theme. Wavering public trust, growing tax debt, and inconsistent compliance rates have put pressure on administrations worldwide. Delegates argued that reliable rules and straightforward processes strengthen voluntary compliance and help administrations focus attention on the issues that truly matter.
To this end, members recommitted to refining dispute-prevention practices, improving advance certainty programs, and supporting low-capacity jurisdictions trying to modernize their systems. Enhancing long-standing initiatives such as the International Compliance Assurance Programme is now part of a broader effort to create tax systems that work smoothly for both authorities and taxpayers.
OECD Tax Authorities Forum: Capacity Building As Collective Priority
The Plenary also placed weight on global cooperation, particularly through capacity building. African tax administrations joined a pre-Plenary roundtable hosted by the South African Revenue Service, exchanging ideas on strengthening revenue collection and digital adoption. The updated Tax Inspectors Without Borders initiative earned strong praise for helping countries expand their administrative skills in practical, measurable ways.
Delegates made clear that supporting developing countries is no longer seen as goodwill alone. Effective revenue collection stabilizes economies, expands public trust, and strengthens cross-border cooperation. The message from Cape Town was that collective progress benefits everyone, especially as tax crime becomes more sophisticated and digital transactions multiply.
A Front-Row View of Administrative Change
From our seat at The RegTech, based in Dubai, we see these trends play out daily. Authorities are moving from digitalization toward deeper administrative change, where technology supports clarity, accuracy, and public confidence. In our work across Africa, the Middle East, and Southeast Asia, we see a growing demand for systems that reduce errors, provide reliable verification, and support staff rather than overwhelm them.
Many of the themes in Cape Town align with what we encounter on the ground. Administrations do not want sayings; they want progress rooted in their own realities. They want tools their staff trust and approaches that meet global expectations without ignoring local constraints. This is where our work in fiscalization, revenue assurance, and taxpayer services fits naturally with the commitments echoed at the Plenary.
OECD Tax Authorities Forum: Shift in Global Cooperation
The Plenary closed with applause for South Africa’s warm hosting and for Brazil’s invitation to welcome next year’s meeting. Yet beneath the ceremonial moments was a serious and united message. Administrations are under pressure to deliver. They know tax gaps cannot be left to widen. They understand that modern tools allow for more precise, consistent administration than ever before.
If the decisions made in Cape Town take hold, the OECD Tax Authorities Forum may soon be seen as more than an annual event. It could become the anchor of a global shift toward smarter and more cooperative tax administration, one where progress is measured not by speeches, but by revenue that finally reaches the public services counting on it.
We are here to help governments, financial institutions, and businesses to effectively comply with growing regulatory requirements through technology.
