By AFP - Agence France Presse
UN starts talks on “fair” tax agreement.
UN member countries began formal negotiations on Monday on an international tax agreement, to create a “fair” system that addresses tax evasion by the super-rich and multinational companies, among other issues.
“Our mandate is clear, we must draw up a framework convention that redefines justice, transparency, and fairness in the international tax system,” said Egyptian official Ramy Youssef, chairman of the UN negotiating committee which is due to last until 2027.
“This is not just a technical exercise. It is a moral imperative,” he said, denouncing billions of dollars ‘lost annually to profit shifting, harmful tax competition, and illicit financial flows’.
“These losses deprive nations, especially the most vulnerable, of essential resources to achieve sustainable development goals, protect human rights, and ensure a just transition to a green future,” he said.
Under pressure from African countries, which want a seat at the negotiating table for international tax rules, the UN General Assembly in 2023 acted on the idea of a framework convention to make tax cooperation “fully inclusive and effective”.
After a year of discussions, the negotiating mandate was adopted at the end of last year.
Among the reference principles are “fair taxation of multinational companies” and “combating tax evasion and avoidance by high net worth individuals”.
Currently, international tax issues are largely decided by the wealthy member countries of the Paris-based Organization for Economic Cooperation and Development (OECD).
Developing nations, which are leading an effort for broader reform of international financial systems, have criticized their exclusion from decision-making.
abd/des/dw
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