UNGA resolution establishes intergovernmental committee on international tax cooperation

On 22 December 2023, the UN General Assembly (UNGA) adopted Resolution 78/230 on Promotion of inclusive and effective international cooperation at the United Nations (UN), highlighting, among other issues, the ‘need for all countries to work together to eliminate tax evasion, tax base erosion and profit shifting and to ensure that all taxpayers, especially multinational companies and transnational corporations, pay taxes to the governments of countries where economic activities occur, value is created and from where revenues are generated’.

The UNGA notes that a ‘UN intergovernmental process for tax-norm shaping and rule-setting, with full consideration of existing multilateral and international arrangements, would leverage existing strengths and address gaps and weaknesses in current international tax cooperation efforts and arrangements’.

Moreover, the assembly emphasises that ‘developing a UN framework convention on international tax cooperation is needed in order to strengthen international tax cooperation and make it fully inclusive and more effective’. As such, the UNGA decided to establish a member state-led, open-ended ad hoc intergovernmental committee for the purpose of drafting terms of reference for a UN framework convention on international tax cooperation. The committee, composed of no more than 20 members, is to convene in New York for up to 15 working days at a time and with the contribution of international organisations and civil society. It is expected to finalise its work by August 2024, and submit a report to UNGA at its 79th session, containing the draft terms of a reference for a UN framework convention.