ATAF statement on the success of the Africa Group resolution for the creation of a United Nations Convention on International Tax Cooperation

The African Tax Administration Forum (ATAF) welcomes the decision by the United Nations (UN) to strengthen the inclusiveness and effectiveness of international tax cooperation. The United Nations is well placed to take forward work to address the global tax issues considering the specific and significant challenges faced by developing countries. Further, ATAF welcomes the coordination of the Africa Group at the United Nations, led by the Federal Republic of Nigeria. 

ATAF considers that the current global tax rules do not result in a fair allocation of taxing rights between source and residence countries to the detriment of source countries and do not effectively address the risks of base erosion and profit shifting (BEPS) in low-capacity developing countries. 

This outcome requires support from governments around the world to establish a fair global tax order. ATAF commends the work that has been done to date by the United Nations Committee of Experts on International Tax Cooperation which has helped developing countries start to tackle some of these challenges. The establishment of a Member State-led, open-ended, ad hoc intergovernmental committee to recommend actions on the options for strengthening the inclusiveness and effectiveness of international tax cooperation provides the opportunity to take forward and build on the work of the United Nations Committee of Experts on International Tax Cooperation and significantly enhance the role of the United Nations in the global standard-setting process. 

This can be achieved if the UN intergovernmental committee provides the technical platform. Such a platform must be fully resourced financially and have the best technical personnel from tax policy and administration as representatives from UN member countries. Such a platform must identify the tax policy and legislative changes needed to achieve an equitable and effective global tax system and develop reports and recommendations that garner the necessary global political support for change to happen. 

Africa will stand to benefit greatly from this initiative, and ATAF stands ready to support it in any way required by the United Nations, further building on the successful partnership with the African Union Commission and the establishment of the African Union Specialised Technical Committee Subcommittee on Tax and Illicit Financial Flows (IFFs).

Issued by ATAF

MEDIA ENQUIRIES:

Miss Refilwe Pitjeng – ATAF Communications Coordinator

Email: rpitjeng@ataftax.org

Phone number: +27 66 217 9126

Mr Thulani Shongwe – ATAF Manager: International Tax

Email: tshongwe@ataftax.org

Phone number: +27 83 271 6033