MUMBAI: After months of intense negotiations, countries are set to vote today on an ambitious scope for a United Nations (UN) tax convention. The proposed ‘Terms of Reference’, which emerged just yesterday, outline the principles and protocols that will guide the framework convention.
The Terms of Reference retain critical elements necessary to ensure the final version of the framework convention, set for negotiation in January 2025, can effectively protect countries’ taxing rights and recover billions from
tax havens
.
Key provisions include specific references to corporate tax, wealthy individuals, tax avoidance, illicit financial flows, and the alignment of tax policies with human rights, sustainable development, and environmental goals.
Sergio Chaparro Hernández, the International Policy and Advocacy lead for the
Tax Justice Network
, emphasized the urgency of the situation, stating, “Our countries are on course to lose nearly $5 trillion to tax havens over the coming decade. The
UN tax convention
is our best shot to avert this and put an end to rampant
tax abuse
by
multinational corporations
and the superrich.”
Alex Cobham, chief executive of the Tax Justice Network, added, “Today, our governments have the opportunity to take a major step towards re-establishing the potential for effective direct taxation—including of multinational companies and the super-rich.”
As the world watches, the outcome of today’s vote could mark a turning point in
global tax governance
, shifting power from the Organisation for Economic Cooperation and Development to the UN and ensuring that all countries have a better say in deciding tax rules.
