Ministers Donohoe & Cannon launch Ireland’s Domestic Resource Mobilisation (DRM) initiative in Washington

18th October, 2019

Initiative aims to scale up support to strengthen developing countries’ tax administrative capacity

Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD and Minister of State at the Department of Foreign Affairs, Ciaran Cannon TD, today (Friday) launched Ireland’s Domestic Resource Mobilisation (DRM) initiative in Washington, where they are attending the IMF and World Bank Annual Meetings.

The DRM initiative is a whole of government collaboration between the Department of Finance, the Department of Foreign Affairs and Trade and the Office of the Revenue Commissioners (Revenue), the aim of which is to strengthen developing countries’ tax administrative capacity.

Speaking from Washington, Minister Donohoe said: ’Revenue from taxation provides governments with the funds needed to invest in the development of physical and social infrastructure and deliver the essential public services required to enhance long-term economic growth and poverty reduction. Ireland is pleased to increase its contribution to capacity building with the aim of supporting our partner countries to better manage their own sustainable development’.

Also participating in the launch, Minister of State for the Diaspora and International Development, Ciarán Cannon T.D. noted: ‘Ireland’s new approach to Domestic Resource Mobilisation is fundamentally based on a principle of partnership and working together with developing countries to support their efforts in raising domestic revenue. In line with Ireland’s new international development policy, ‘A Better World’, we aim to support countries to raise revenue fairly and efficiently through equitable and inclusive means, while also promoting good governance’.

Irish authorities are already providing valuable support to developing countries’ tax administrations. The Irish Revenue Authority provides training for tax officials from around the world through platforms such as the Global Relations Programme and also seeks direct bilateral partnerships with specific tax authorities. This initiative, which aims to support partner tax administrations and enhance the capacity for sustainable DRM, building on what we are already delivering. Under the DRM initiative launched today Ireland will support partner tax administrations by:

(i)         Scaling-up our support to DRM activities, at least doubling our funding by 2020;

(ii)         Sharing our experience through effective global partnerships such as the African Tax Administration Forum (ATAF); and

(iii)        Shaping an enabling environment through co-ordinated action across Government.

These measures will enable support to build effective and fair tax systems to be offered in a wide range of areas including Technical and Specialised Tax areas; Operational Effectiveness; and Organisational and Institutional Change Management. Ireland will pursue a partnership approach to the support offered by developing strategic relationships with credible and well established actors including the World Bank, the IMF and ATAF.