NEW YORK – The African Tax Administration Forum (ATAF) has called for parties to close ranks and aim at a robust term of reference for a framework convention that promotes effective and inclusive global tax governance at the
United Nations. ATAF posited that such a convention would be a win-win for all parties as it would guarantee fair and balanced taxing rights for all nations, including the developing countries, thereby allowing for mobilization of the much-needed resources to finance development initiatives of various government including the SDGs.
Representing ATAF at the Intergovernmental Committee to Elaborate the Terms of Reference for the Framework Convention in New York, USA, Mr. Emmanuel Eze, ATAF Senior Advisor to the African Union, underlined the importance of clarity and direction, inviting parties to note and avoid the pitfalls inherent the existing platforms that has made them ineffective as they move to design a better framework at the UN.
The
United Nations Framework Convention is an initiative of the African Group at the United Nations supported by the African Union and over 120 countries from across the world. The United Nations General Assembly has, through its resolution 78/230 of December 22nd 2023, established an Ad Hoc Intergovernmental Committee to draft terms of reference for a framework Convention to promote inclusive and effective international tax cooperation at the United Nations.
The convention which has been described as once-in-a-century opportunity has the potential to significantly change the global tax system, ensuring fair and equitable taxation of multinational enterprises, the digital economy, cross-border services and tackling Illicit Financial Flows and Base Erosion and Profit Shifting. The draft parameters, known as “Terms of Reference,” are set to be released by August for further consideration and vote by the General Assembly in November. ATAF moved that the convention be guided by the principles of equality, fairness, simplicity as well as special and differential treatment for developing economies.
ATAF, with 43 African Countries as members, is mandated by the statutory organs of the African Union to work with
African Union in supporting member states in global tax policy negotiations.
