government-funded activities risks contributing to the legitimization of the Taliban-controlled government in the eyes of the Afghan people. [...] government has continued to be the largest international donor supporting the Afghan people since the former Afghan government collapsed and the Taliban returned to power in August 2021.1 Since then, the U. [...] S.-funded education assistance to Afghanistan by imposing and collecting taxes on those projects.6 Similarly, our 2023 High-Risk List identified the Taliban’s access to international funds through the imposition of taxes, fees, duties, and utilities as one of the biggest risks to the efficacy of U. [...] funds intended for the benefit of the Afghan people have been provided to the Taliban- controlled government in the form of taxes, fees, duties, and utilities, which the Taliban-controlled government requires implementing partners to pay to operate in Afghanistan. [...] funds intended for the Afghan people are directly benefitting the Taliban-controlled government in the form of taxes, fees, duties, and utilities, which the Taliban-controlled government require implementing partners to pay in exchange for operating in Afghanistan.
Authors
- Pages
- 45
- Published in
- United States of America
Table of Contents
- U.S. Funds Benefitting the Taliban-Controlled Government: Implementing Partners Paid At Least $10.9 Million and Were Pressured to Divert Assistance 2
- Background 11
- Requirements for Reporting Taxes, Fees, Duties, and Utilities on U.S. Assistance 12
- Implementing Partners Paid At least $10.9 Million to Taliban-Controlled Entities since August 2021, and the Taliban Pressured Implementing partners to Divert Assistance 15
- Implementing Partners Paid at Least $10.9 Million in Taxes, Fees, Duties, and Utilities to the Taliban-Controlled Government since August 2021 15
- The UN Does Not Track the Payment of Taxes, Fees, Duties, and Utilities by Its Implementing Partners, Despite Knowing Such Payments Occur 17
- Taliban Demands Negatively Impacted Implementing Partners’ Ability to Provide Aid to the Afghan People 18
- U.S. Agencies Provided Limited Oversight and Did Not Enforce Reporting Requirements Related to Implementing Partner Payments of Taxes, Fees, Duties, and Utilities in Afghanistan 19
- Agencies Did Not Include Tax Reporting Clauses in Awards or Require All Taxes to Be Reported to U.S. Agencies 19
- State and USAID Did Not Include Foreign Tax Reporting Requirements in Some Applicable Awards 21
- U.S. Agencies Did Not Ensure Implementing Partners Submitted all Required Tax Reports for FY 2021 and FY 2022 22
- Implementing Partners Reported Inconsistent Compliance with OFAC’s Recordkeeping Requirements 24
- Conclusion 25
- Recommendations 26
- Agency Comments 26
- Appendix I - Scope and Methodology 28
- Appendix II - Agency Guidance by Award Type 29
- Appendix III - Comments from the U.S. Department of State 32
- SIGAR’s Response to Comments from the U.S. Department of State 36
- Appendix IV - Comments from the U.S. Agency for International Development 37
- SIGAR’s Response to Comments from the U.S. Agency for International Development 41
- Appendix V - Comments from the U.S. Agency for Global Media 42
- Appendix VI - Acknowledgments 43
