Today marks the beginning of a historic shift to recover fairness and inclusiveness in global taxation. A vote by a majority of 77 countries at the UN is a clear sign for more and better multilateralism on tax standards, to put an end to tax abuses by multinationals and the rich.
ICRICT welcomes the willingness of most of the world's countries to bring international tax decisions and governance to the UN, through the negotiation of a framework tax convention, building on progress made so far in other international and regional institutions.
ICRICT hopes that the OECD member governments, who today voted against this resolution, will soon realize that it is in their own best interests--and the interests of their own citizens--to join and support this inclusive process.
Quote Professor Jayati Ghosh ICRICT co-chair: “The world is undergoing multiple and simultaneous crisis and uncertainties. The advanced economies cannot afford to deny developing countries the right to increase their revenues by fairly taxing the richest and corporations operating in their territories. The UN is the place to deliver a binding tax convention and to secure a level playing field for all countries”.
Quote Professor Joseph Stiglitz ICRICT co-chair: “The international community needs to deliver effective solutions. A decade-long negotiation process at the OECD has proven insufficient, and the shift to the UN is a clarion call for a broader approach that is essential to achieve an effective outcome this time.”
Quote Professor Jose Antonio Ocampo ICRICT commissioner: “The time has come to go one step further towards global social justice, the strengthening of institutions, democracy and international stability. Let's learn from all the efforts of the past and build this process not on antagonism, but on real cooperation between countries and between global institutions. This is in the interest of all citizens, in every country on the planet”.
For too long, international institutions have failed to address one of the most toxic aspects of globalization: tax avoidance and evasion by multinational corporations. Fair taxation of multinationals must be a central part of any tax system aimed at driving economic growth and creating high living standards for all.
Read ICRICT Open Letter to President Biden, via Project Syndicate.
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