IMF Advocates Anti-Tax Avoidance for Emerging Economies

The International Monetary Fund (IMF) has reported that implementing stronger anti-tax avoidance measures could yield substantial benefits for emerging market and developing economies by minimizing profit shifting and safeguarding government revenue. This finding is part of the IMF’s October 2026 World Economic Outlook, which analyzes how international tax rule changes are affecting competition for multinational investments and profits.

The IMF noted that the rise of intangible assets has facilitated profit reporting separation from actual business operations, but new anti-avoidance rules are beginning to alter this trend. The report indicates that competition among countries over corporate tax rates has lessened since the mid-2010s, coinciding with the introduction of stronger regulations to curb tax-base erosion.

The IMF's findings are particularly pertinent to Nigeria, where tax compliance and revenue mobilization remain critical issues, with a report indicating that 99% of Nigeria’s wealthiest individuals are allegedly evading tax obligations.