Diplomats from the European Union and the UK have been accused of trying to “kill” proposals that seek to give more voice to developing countries such as Nigeria, Ghana, Brazil, India, and others in international tax negotiations.
Countries are in talks at the United Nations over plans to give the UN more of a role in global tax discussions — a measure being pushed for by low- and middle-income countries.
The Organization for Economic Cooperation and Development (OECD) has convened countries over international tax matters for decades, but it has attracted criticism from officials in some developing economies who believe it does not reflect their interests.
According to a Financial Times report, last year, a group of 54 African countries, frustrated at the OECD process, successfully brought a resolution at the UN General Assembly.
This recommended that the UN secretary-general produce a report assessing ways to strengthen the “inclusiveness and effectiveness” of international tax cooperation, including options that gave the UN more of a role on the global tax stage.
The measure was adopted unanimously in November 2022 and the UN secretary-general published a report in the summer listing three potential options that would give the UN more of a role in international tax cooperation: two legally binding and one voluntary option.
A negotiator from a developing country told the Financial Times that representatives of the EU and the UK had been vocal in their opposition to backing any of them.
Developing countries, including Nigeria, Ghana, India, and Brazil, have been pushing for a legally binding role in UN tax negotiations.
European countries, however, are concerned that a greater role for the UN would undermine existing procedures at the OECD and fragment the international tax system.
In 2021, the OECD unveiled a groundbreaking tax deal to tackle corporate tax avoidance. However, its implementation has been beset by delays and doubts over ratification.
In September, EU finance ministers said EU member states “could consider working at the UN on a non-binding multilateral agenda for coordinated actions”.
This voluntary option would
However, negotiation documents seen by the FT, showed that those representing the EU, along with other nations, had sought to row back from supporting even the voluntary option presented by the secretary-general’s report.
Instead, they have backed the creation of a new working group that would propose alternative options for a UN role and bring these back for discussion at the 80th UN General Assembly which starts in September 2025.
A UK government spokesperson said the UK had “long worked with partners to find international co-operation on tax” and had a “strong record” of working with developing countries.
In September it announced a new £17 million package to help developing countries collect taxes owed to them.
