UN Adopts Terms for Global Tax Cooperation, African Interests Included
The adoption of the ToR is particularly significant for developing nations, which often struggle with revenue losses due to complex international tax issues.
PRETORIA, South Africa— A United Nations committee has adopted draft terms for a global tax cooperation framework, marking a significant step toward addressing international tax issues, writes Winston Mwale.
The Intergovernmental Committee on International Tax Cooperation approved the Draft Terms of Reference (ToR) for a UN Framework Convention on International Tax Cooperation on Thursday.
"The adoption of these Terms of Reference is a crucial step towards a fair and equitable international tax system," said Logan Wort, Executive Secretary of the African Tax Administration Forum (ATAF).
The move aims to create an inclusive system to combat tax evasion, avoidance, and illicit financial flows. It follows UN General Assembly Resolution 78/230, which called for stronger international tax cooperation.
ATAF, representing 44 African member states, collaborated with the African Union and other pan-African organizations to ensure the continent's interests were represented in the process.
The draft ToR outlines objectives for the framework convention, including developing protocols on taxing income from cross-border services in a digital economy.
Negotiations based on the adopted ToR are scheduled to begin in 2025, with the final text of the framework convention expected by 2027.
This development is seen as a major advance in establishing a more transparent and equitable global tax system that addresses the needs of all nations, including developing countries in Africa.
The adoption of the ToR is particularly significant for developing nations, which often struggle with revenue losses due to complex international tax issues.