EU and UK Accused of Obstructing Global Tax Talks at the UN

Nov 15, 2023 02:18:11 pm
Manhajul Islam, S. Ak - BATS Consulting

In a recent United Nations meeting, the European Union (EU) and the United Kingdom (UK) have come under scrutiny for allegedly attempting to thwart proposals aimed at granting developing countries a greater voice in international tax discussions.

Countries at the UN are currently engaged in discussions on plans to enhance the role of the UN in global tax deliberations—a proposition driven by low and middle-income nations. For decades, the Organization for Economic Cooperation and Development (OECD) has served as the platform for countries to engage in international tax discussions. However, some developing nations feel that this system does not adequately represent their interests.

Last year, a coalition of 54 African nations, frustrated with the OECD, successfully brought a resolution to the UN. The resolution suggested that the UN Secretary-General produce a report to strengthen international tax cooperation, including granting a more substantial role to the UN.

Despite the production of this report, representatives from the EU and the UK are reportedly opposing all options presented. Negotiators from developing countries have expressed that "they do not want to bring tax matters to the UN. They are attempting to halt this process."

Developing countries, including Nigeria, Ghana, India, and Brazil, advocate for a binding legal role for the UN in tax discussions. However, the EU is concerned that the UN could disrupt existing procedures at the OECD, potentially causing turmoil in the international tax system. In 2021, the OECD attempted to address corporate tax avoidance, but implementation faced delays.

In September, EU finance ministers suggested that EU member states "could consider working in the UN on a voluntary multilateral agenda." Nevertheless, EU representatives appear unsupportive of the voluntary options proposed in the UN Secretary-Generals report.

Instead, they advocate for the creation of a new working group that will propose alternative options for the UNs role. This group will discuss these new options at the 80th UN General Assembly in September 2025. Negotiators from developing countries deem this suggestion "unproductive and aimed at delaying decisions."

A spokesperson for the UK government stated that the UK has "long collaborated with international partners on tax matters" and has a "strong track record" of working with developing countries. Despite differences of opinion, both parties claim to be negotiating in good faith.

Share to:

Get In Touch

+6221 2212 9136

info.batsinternationalgroup@gmail.com

Follow Us

image-responsive

Indonesia Stock Exchange Building, Tower 1 Level3 Suite 304, SCBD Jl. Jend. Sudirman Kav. 52-53. Jakarta Selatan 12190

+6221 2212 9136

+6281 6110 5174

info@sustainabilityassurer.bats-consulting.com

sustainabilityassurer.bats-consulting.com

Flickr Photos

© Bats Consulting