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Africa must strengthen its collective voice and representation to ensure that the ongoing engagement on reforming the global financial architecture delivers a solution that is inclusive and delivers tax justice for the continent. This was among the key deliberations that came out of the UN Tax Convention webinar organised by TJNA titled ‘The impact of the UN General Assembly's adoption of a Resolution Towards the UN Tax Convention’.
The webinar brought together tax justice stakeholders to take stock of progress towards a UN Tax Convention since member states resoundingly passed a resolution on the commencement of the process towards a UN framework convention on international tax cooperation at the United Nations General Assembly Second Committee in November 2023.
“The framework convention remains the most viable option for reforms of the international financial architecture as it will create one global agreement on a framework for international tax cooperation,” said Tove Maria Ryding, Policy and Advocacy Manager for Tax Justice, the European Network on Debt and Development.
Francis Kairu, Policy Officer at TJNA noted that the current financial architecture has not worked for Africa and it will not work until it is revamped to address the specific needs and issues of African countries as well as other developing countries.
As the process of establishing the UN Framework Convention progresses, Africa must continue to take the driver's seat in pushing for these reforms. The continent’s unity and solidarity and the ability to forge alliances with Global South countries and civil society organisations and maintain a united front at the negotiating table is key in the development of the Framework Convention.
“One success witnessed in the reform of global financial architecture is the Pan-African collaboration against illicit financial flows which made it possible for these arguments to go high on the policy agenda of the African Union,” noted Dr Dereje Alemayu, Executive Coordinator, Global Alliance for Tax Justice.
Notably, the process towards the UN tax convention has kicked off with successful negotiations to secure budget approval at the United Nations General Assembly Fifth Committee. Further, the nomination of members of the Adhoc Intergovernmental Committee by the different UN regional groups took place in January 2024, as highlighted by Hon. Irene Ovonji-Odida, Commissioner at the Independent Commission for the Reform of International Corporate Taxation. The committee is mandated with developing terms of reference for the UN tax convention.
It is essential for all stakeholders to actively participate in ongoing discussions and engage with diverse primary and secondary data, to inform the development of the Framework Convention thereby ensuring the inclusion of voices from the Global South.
In terms of progress towards the framework convention, Hon. Ovonji-Odida noted that the Adhoc Committee is currently drafting Terms of Reference for the negotiations on the framework convention which will be used to shape the way the actual negotiations of the framework convention are held. This process will end in August 2024, ushering in the next phase which is the negotiations on the framework convention based on the terms of reference.
For further information about the UN tax convention, interested parties are encouraged to contact Everlyn Muendo at emuendo[@]taxjusticeafrica.net.