And it’s a much bolder document than I had expected.
Comments are invited on the draft, with a deadline of 21 June.
On the draft itself:
Interesting to see provision for simultaneous negotiation of protocols on ‘contentious’ issues such as the digitalised and globalised economy, and the taxation of income from cross-border payments.
Also interesting to see mention of commitments on ‘fair allocation of taxing rights’.
Wonder how much of these bold statements will survive into the final version.
A nod to the work of (among others) the OECD, in the provision that the intergovernmental negotiating committee ‘should take into consideration the work of other relevant forums, …’, plus potential synergies, tools, strengths, expertise and complementarities ‘available in the multiple institutions involved in international tax cooperation …’
Curious to see how far the concept of ‘take into consideration’ will be stretched here. Doubtless the OECD countries will prefer for it to mean, ‘no overlaps with existing work’. Others on the opposite side of the debate will interpret it as meaning ‘take what is good, but let the UN fill in the existing gaps, and fix the bad’.
The intergovernmental negotiating committee will begin work in 2025, and should work into 2026. But first, they need a working draft. I’m very sure this zero draft will be put through the wringer during the next round of discussions, scheduled for later next month.
All eyes on this space.
Photo by Mathias Reding on Unsplash.
