Specifying the precise national mechanisms for analysing spillover effects is difficult due to country-specific contexts and the complex, often changing nature of tax processes.6 Therefore, instead of presenting an exact model, this Guiding Framework presents recommendations for the factors that national tax spillover analyses should take into account in terms of methodology, scope and process.

This Guiding Framework, which has been developed with inputs from partners from across Europe and Africa, argues that spillover analyses need a broader scope than those so far conducted by the Netherlands and Ireland, and should take into account human rights impacts, transparency measures, international cooperation and also potentially positive spillover effects.

In order to turn improved knowledge into improved policy decisions, more dialogue is needed across national borders and across ministries and institutional “silos” within individual EU member states. ActionAid hopes that the recommendations will encourage such dialogues.