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In a historic step forward in the fight for a fair and effective international tax system, the Chair has released the final draft Terms of Reference (ToR) for a United Nations Framework Convention on International Tax Cooperation (UN Tax Convention). This text is expected to be voted upon Friday, August 16th at 3pm EST at the UN Headquarters.
New York City, 16 August 2024 – In a historic step forward in the fight for a fair and effective international tax system, the Chair has released the final draft Terms of Reference (ToR) for a United Nations Framework Convention on International Tax Cooperation (UN Tax Convention). This text is expected to be voted upon Friday, August 16th at 3pm EST at the UN Headquarters.
In reaction to the release of the final draft ToR, Dereje Alemayehu, Executive Coordinator of the Global Alliance for Tax Justice (GATJ), said:
“As civil society, we call on all UN Member States to endorse the terms of reference for a UN Tax Convention. After three weeks of intense negotiations, the final draft of terms of reference includes many of the crucial elements for a robust UN Tax Convention, namely the fair allocation of taxing rights, curbing illicit financial flows, and taxing multinationals and the rich. The terms of reference opens a historic opportunity to deliver on global tax justice.
The current global tax rules are broken beyond repair and not fit-for-purpose. Our current global tax system deepens inequalities within and between nations and hinders the mobilisation of resources needed for development, climate action, human rights, and public services. The UN Tax Convention negotiations are a hard-fought process that can finally deliver on inclusive and effective international tax cooperation.”
Luis Moreno, Representative of Red de Justicia Fiscal de América Latina y el Caribe (RJFALC) and Chair of the Coordination Committee of the Global Alliance for Tax Justice (GATJ), said:
“For years, the Global Alliance for Tax Justice has campaigned for a global tax body at the UN that would address the tax injustices that are embedded within our international system and be able to recover tax resources for the financing of our environmental and social protection systems and reduce all the inequity gaps between and within our countries. We welcome the publication of the final terms of reference, and we call all UN member states to support the text.”
Tove Maria Ryding, Tax Coordinator at European Network on Debt and Development (Eurodad), and member of the Coordination Committee of GATJ said:
“While international tax dodging and tax havens are costing the Global South countries most money in relative terms, Global North countries lose the most in absolute terms. Therefore, it is in the interest of countries all around the world to support the UN Tax Convention. A number of the northern OECD Member Countries have been laggards in the negotiations and worked hard to water down the level of ambition in the text. And, although the deal is still ambitious, it is definitely weaker than what developing countries were calling for. With that in mind, it would be really unacceptable if the OECD countries fail to push the yes-button when it is time to vote.”
Everlyn Muendo, Policy Lead for Tax and International Financial Architecture at Tax Justice Network Africa (TJNA) said:
“Without the leadership of the African Group, the process to develop the terms of reference for the UN Tax Convention would not be possible. In the past two weeks of negotiations, the African Group has remained resolute in its support for fair and effective global tax rules.
We call on all Member States to support the finalisation of the Terms of Reference. Inclusive and effective international tax cooperation is a crucial step towards developing countries being able to sustainably finance development.”
Jeannie Manipon, Co-coordinator of Tax and Fiscal Justice Asia (TAFJA) and member of the Coordination Committee of GATJ said:
“The release of the final terms of reference for the UN Tax Convention means that another milestone has been reached in the long fight to make global tax rules work for people and the planet. The three weeks’ intergovernmental negotiations that led to this ToR went through an intense process in which Member States heard valuable contributions from civil society. We expect all governments to support and vote ‘yes’ to the terms of reference, and stay the course in ending unjust global tax rules through a UN Tax Convention.”
ENDS
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Notes to the Editors
Information on the second session can be found here. The final draft terms of reference can be found here.
Media Contact
Alexandra Wenzel – Global Communications Coordinator, Global Alliance for Tax Justice (GATJ) – alexandra@globaltaxjustice.org
The Global Alliance for Tax Justice (GATJ) is a South-led global coalition in the tax justice movement. Together we work for a world where progressive and redistributive tax policies counteract inequalities within and between countries, and generate the public funding needed to ensure essential services and human rights.
Created in 2013, GATJ comprises regional tax justice networks in Asia (Tax & Fiscal Justice Asia), Africa (Tax Justice Network Africa), Latin America (Red de Justicia Fiscal de América Latina y el Caribe), Europe (Tax Justice-Europe) and North America (Canadians for Tax Fairness & FACT Coalition), collectively representing hundreds of organisations. GATJ facilitates the tax justice workstream of the CS FfD Mechanism.
