On behalf of the Civil Society FfD Mechanism and 176 signatories, including the IEJ, and in response to the call for inputs to the work of the Ad Hoc Committee to Draft Terms of Reference for a United Nations Framework Convention on International Tax Cooperation, the following comprehensive submission has been made.
Procedural Elements
Establishing Inclusive Governance – The FCITC must establish a fair, transparent, and inclusive structure for global governance, including a Conference of the Parties (COP) and a neutral Secretariat.
Subsidiary Bodies – Incorporating the UN Expert Committee on International Cooperation in Tax Matters as a subsidiary body and establishing UN public registries are essential steps.
Enforcement and Compliance – Addressing reporting requirements, dispute settlement, enforcement, and compliance mechanisms ensures effective implementation.
Substantive Elements
Objectives and Principles – Promoting international tax cooperation, fairness, and combating tax-related illicit financial flows are core objectives. Principles include sovereign rights, civil society participation, and the polluter pays principle.
Scope and Definitions – Definitions of illicit financial flows, corporate groups, and taxation scope are essential for clarity and inclusivity.
Cross-cutting Issues
Tax and Gender Equality – Ensuring women’s participation and considering human rights obligations are integral to our proposal.
Transparency-related Provisions – Advocating for automatic information exchange, public beneficial ownership registers, and transparency around tax incentives.
Tax-related Provisions
International Corporate Tax System Reform – Proposing a fundamental reform to ensure MNCs are taxed fairly and a minimum effective corporate tax rate is introduced.
Taxation of Cross-border Services – Highlighting the importance of taxing digital services and e-commerce fairly in a globalized economy.
Early Protocols
Comprehensive Approach – Identifying issues for future protocols ensures the FCITC covers key components of international tax cooperation.
Committee Process
Participation of Civil Society – Advocating for inclusive and transparent negotiation sessions where civil society can contribute effectively.
Transparency of Negotiations – Emphasising the importance of transparency by live-streaming negotiation sessions on UN Web TV.
Support for Developing Countries – Calling for support mechanisms to ensure the effective participation of developing countries in the negotiation process.