International Cooperation on Tax Matters at the United Nations: A Turning Point in History?

Abstract

On 15 November 2023, the United Nations General Assembly decided to establish a member-state-led, open-ended, and ad hoc intergovernmental committee to draft the general terms of a UN Framework Convention on international tax cooperation (2023 UN resolution), triggering conflictive reactions. On one side, there is evident skepticism, possibly influenced by the dominant narrative ––supported by those who subscribe to it–– that has attributed control to the OECD over the developments of international tax standards for decades, or simply by the fact that swapping roles regarding who governs the making of international tax law is simply not enough. On the other side, there is optimism, especially from those who perceive the 2023 UN resolution as a turning point in the history of international tax policy, capable of shooting down the OECD’s historical dominance of the international tax agenda, which has disregarded in many occasions the genuine interests of developing nations. This article adopts a moderated stance, suggesting that whilst it is still premature to speak of a turning point in history, the 2023 UN resolution represents an extremely important recognition of the need for counterbalances in the dynamics of powers in international taxation. It also highlights the significance of flexibility as a policy strategy that may foster more inclusive international tax cooperation in the future.

Keywords: UN tax cooperation; global tax governance; developing countries; OECD; international tax

JEL Classification: K34