CSOs from around the world reject the G7/G20/OECD tax ‘deal of the rich’

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Link to Statement: https://www.globaltaxjustice.org/sites/default/files/GATJ%20Statement%20on%20the%20G7-G20-OECD%20tax%20deal%20081021.pdf

Download pdf here.

The Civil Society Financing for Development (FfD) Group joins over 250 civil society organisations from around the world in rejecting the recent tax deal. Anticipating the outcome of the OECD-led negotiations will not benefit developing countries, the Global Alliance for Tax Justice issued the attached statement calling on CSOs worldwide to reject the deal whose parameters and contents were framed around the earlier tax deal of the G7 governments.

Far from ensuring the taxing rights of developing countries, the “solutions” will limit the right to tax of source countries to a small proportion of MNCs’ profits and entrench taxing rights to headquarter countries (mostly OECD countries) over global profits. The institutional arrangement in which these “solutions” are being “negotiated” lacks legitimacy, transparency and accountability. 

A solution agreed in a politically biased and opaque process, outside the UN system and the related accountable country representation, cannot have the legitimacy to be a binding international agreement.

The Civil Society FfD Group therefore reiterates its call for the establishment of a universal, intergovernmental UN tax commission and negotiating a UN Tax Convention to comprehensively address tax havens, tax abuse by multinational corporations and other illicit financial flows. We call upon countries to overcome the blockage to bring reform of international tax rules into the UN and work together for a truly inclusive and transparent negotiation process.