International Tax Cooperation at a Crossroads: Supporting Inclusive and Effective Participation of Developing Countries in a Rapidly Changing International Tax Cooperation Landscape
Domestic revenue mobilisation (DRM) bolsters trust in governments and allows them to deliver vital health and education services and finance sustainable growth. The commitments made by the members of the Addis Tax Initiative (ATI) through the ATI Declaration 2025 are at the core of the efforts to achieve the Sustainable Development Goals (SDGs) through enhancing DRM. Moreover, the international community agrees on the necessity to combat tax-related illicit financial flows (IFFs) as a means to boost revenues for financing the SDGs. Effective and universal international cooperation imposes itself as a key ingredient to stamp out IFFs. In turn, international cooperation should be inclusive and account for the capacities of all countries as outlined in the Addis Ababa Action Agenda agreement.
The next few years will likely be decisive for the architecture of international tax cooperation. The OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), the work of the current UN Tax Committee, and the intergovernmental discussions for a UN Tax Convention for tax cooperation are all mechanisms that carry the potential to reshape the international tax architecture further. This context represents both an opportunity and a tremendous challenge for ATI partner countries – and, more broadly speaking, developing countries. It is crucial for them to engage in these processes in a meaningful manner that guarantees that they can shape the outcomes of these processes and implement them. The commitment of development partners in supporting this quest is critical to ensure that the international tax architecture is fit for purpose so that it can propel financing the SDGs.
This Addis Tax Initiative side event back-to-back to the 2024's ECOSOC's Financing for Development Forum, co-organised with Norad, the Permanent Mission of Norway to the UN, and the Permanent Mission of Zambia to the UN, will gather insights on the constraints and challenges faced by ATI partner countries – and developing countries– when engaging in international tax cooperation. The discussion will address the distinct challenge relating to the need to build bridges between the political and the technical stakeholders involved in negotiations. Subsequently, the participants will discuss the support ATI partner countries need from ATI development partners and relevant international and regional organisations to enhance their participation in, and implementation of the various mechanisms of international tax cooperation. Finally, the event will conclude by exploring some thoughts on the complementarity, coalition, and coherence that can be achieved among the various bodies and frameworks operating in international tax cooperation under the potential umbrella of a UN Tax Convention.
☕ Note: We would be delighted to share a light breakfast with the in-person participants.