The Second Committee (Economic and Financial) of the United Nations General Assembly has approved a resolution concerning the promotion of inclusive and effective international tax cooperation.
The approval of the resolution highlights the growing discontent of developing countries with the international tax cooperation led by the OECD. In the past, the OECD has suffered criticism for being seen to promote the interests of developed countries to the detriment of developing ones. As the resolution was approved by consensus, it appears that there is broad support for developing a more inclusive platform for cooperation on international tax matters.
Next, intergovernmental discussions on ways to strengthen the inclusiveness and effectiveness of international tax cooperation will begin in New York. Under the discussions, the possibility of developing an international tax cooperation framework or instrument shall be discussed. The framework or an instrument would be developed and agreed upon through a United Nations intergovernmental process (instead of the OECD). However, several representatives of mostly developed countries have stressed the importance of work conducted at the OECD and that the cooperation at the UN should not duplicate the work that has already been done (read more here).
By September 2023, the Secretary-General shall prepare a report where all relevant international legal instruments, other documents and recommendations that address international tax cooperation will be analysed, and potential next steps outlined. The General Assembly will consider the report at its next annual session.
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