A/HRC/43/45/Add.4 Comments by the Government of Mongolia on the Report of the Independent Expert on the effects of foreign debt and other related international financial obligations of States on the full enjoyment of human rights, particularly economic, social and cultural rights on his visit to Mongolia (A/HRC/43/45/Add.2) Comments made by the General Department of Taxation of Mongolia • According to the recommendations given by the European Economic Cooperation Development Organization’s BEPS initiative, the Parliament of Mongolia has adopted revised General Law of Taxation, the Law on Income Tax of the Economic Entity, and Personal Income Law in March 2019, which legitimizing the methods and mechanisms to fight against international tax evasion. • For instance, Article 16 on general provisions to fight against tax evasion, Article 18 on information exchange with foreign authorities, Article 37 on general principles on transfer pricing, Article 38 on country-by-country reporting and transfer pricing report and Article 39 adjustment of transfer pricing and methodology of the General Law of Taxation, as well as article 27 and 31 of Law on Income Tax of the Economic Entity have established legal environment for protecting Mongolia’s tax base by incorporating internationally recognized (actions) standards. • According to this, the General Department of Taxation of Mongolia established the Division of Transfer Pricing in its structure and trained more than 10 officers through the special capacity building program. • Revised tax laws will be effective from the year of 2020 and will fully implement the recommendations made by the Independent Expert, in particularly to combat illicit financial flows, tax evasion and avoidance by the transnational corporations. • The General Department of Taxation of Mongolia fully agrees with the Independent Expert’s views which appear on paragraph 43 and 44 of the draft report. Comments made by Mongolian Central Bank With reference to the draft report of the Independent Expert, the Central Bank of Mongolia is of the view to revise the following statistics: • Mongolia’s economic growth rate reached significant peaks over the past few years, with impressive figures having been registered at the beginning of the 2010s and growth rate culminating at 2.4% of the GDP in 2015 (paragraph 12). • More recently, due to the sharp fall of mineral prices between 2015 and 2016, with the economic growth rate fell down by 1.2 points to 1.2% of GDP in 2016 while public debt amounted to 79% of the GDP for the same year (paragraph 13). Comments made by the Ministry of Finance 1. In paragraph 28, the Independent Expert has mentioned that “the Mongolian 2016 Law on Legislation is an interesting tool as it already provides for the undertaking of economic, social and regulatory impact assessment of policy reforms. However, this exercise has not been regularly carried out and a number of interlocutors have highlighted the lack of sufficient desegregated data and technical capacity, shedding light on potential areas for improvements”. The Law on Legislation was enacted in 2016 requires that impact assessments of any draft law shall be carried out in line with specific methodology which is prescribed in Article 12.1 2