Historic UN Convention could mean the end of international tax abuse
The governments of the world are meeting from 29 July to 16 August in New York, to discuss the terms of reference for negotiating a UN Tax Convention. After decades of disappointing initiatives by the OECD -a group of mostly high-income countries such as the U.S., the U.K. and Japan – to establish a universal tax framework that could retrieve the billions of USD lost each year to international tax abuse, in 2023 the African group at the UN secured the approval of a historic resolution to begin negotiations for a UN Framework Convention on International Tax Cooperation.
The substantive rules developed through these OECD initiatives often do not adequately address the needs and priorities of developing countries
Antonio Guterres, UN Secretary General
Ramping up efforts towards fiscal justice
The international tax system has been ruled by the 38 members of the OECD with meagre results. The limited successes are the consequence of the organisation’s lack of universal membership, as the majority of the world don’t have a seat at the table to agree on common rules. The new UN process might change this and provide an arena to discuss on equal footing.
An ad hoc intergovernmental committee was formed this year to draft a ToR for negotiating the Framework Convention, which should be finalised by August 2024 and submitted to the General Assembly at its seventy-ninth session (December 2024).
The draft ToR is a first crucial step in the development of the Framework Convention, as it sets the stage for achieving a strong instrument or a weak one.
A unique opportunity
This process is a historic opportunity to decolonise the international tax system and ensure that less privileged countries and communities don’t keep losing financial resources to global corporations and wealthy individuals.
For this reason civil society, including members of ACT alliance, will be present in New York to campaign for a strong UN Tax Convention based on human rights, equality and justice.
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