On 20 September 2023 the UN held a high-level dialogue on financing for development, including a session on Promoting inclusive and effective international tax cooperation and mobilizing domestic resources.

Keynote addresses were given by the President of Nigeria, the Prime Minister of Norway, the Executive Director of the Global Initiative for Economic, Social and Cultural Rights and the Chair of the High-Level Panel on Illicit Financial Flows (IFFs) from Africa.

Thabo Mbeki, the Chair of the High-Level Panel on IFFs from Africa, noted that action was required without delay to follow up the UN Resolution on tax cooperation. Tax discussions through the UN were crucial for balance and effectiveness. Option 2 of the options set out in the secretary general’s report was strongly recommended (a framework convention in the form of a legally binding multilateral instrument, to establish an overall system of international tax governance). The 78th session of the General Assembly should take the necessary steps.

The contributions from high-level representatives of the UN member states emphasised that a reform of the international architecture is required, and that governance is important. Developing countries must play a greater role in international institutions. Some countries including Hungary and Estonia emphasised the importance of tax knowledge sharing and that they could share their experience of increasing the efficiency of tax administration, including the use of digital technology.

The key respondents included Chennai Mukumba of the Tax Justice Network Africa, who noted that there is a need for a greater role for developing countries. Now the platform is shifting back from the OECD to the UN, following UN resolution 77/244 on inclusive and effective tax cooperation. A platform is required to take account of the needs and concerns of all countries, with all countries participating on an equal footing. The fight against tax evasion and IFFs is important. Some years ago, the African Union’s High-Level Panel on IFFs found that Africa was losing around USD 50 billion a year to IFFs; and that figure has now increased to USD 90 billion a year. The UN member states should proceed with Option 2 of the Secretary General’s report.

John Denton of the International Chambers of Commerce (ICC) noted that 70% of the ICC member organisations are in the global South. Cooperation on international taxation is necessary to achieve tax certainty and to avoid double taxation. The ICC supports the UN Committee of Tax Experts, but the new approach at the UN must ensure tax certainty for business. There must not be any multiplication and fragmentation of tax frameworks as this will give business greater compliance burdens and could increase tax disputes. Coordination is essential.

Sima Bahous, the Executive Director of UN Women, noted the need to align the tax system with human rights norms including gender equality. Investment is needed to close gender gaps and the resources must flow to where they are needed most. There is a need for greater representation of women in leadership positions.