Excellencies,
Distinguished Delegates,
Ladies and Gentlemen,
I have the honour to declare open this organizational session of the Ad Hoc Committee to Draft Terms of Reference for a United Nations Framework Convention on International Tax Cooperation. On behalf of the Secretariat, I would like to welcome everyone present here today and following online via UN Web TV.
The General Assembly established this new, ad hoc intergovernmental body by its resolution 78/230 of 22 December 2023. This was a historic step forward in promoting inclusive and effective international tax cooperation at the United Nations. It is also a key step in achieving the Addis Ababa Action Agenda and the 2030 Agenda for Sustainable Development.
Aggressive tax avoidance and tax evasion have a corrosive effect on public trust, financial integrity, the rule of law and sustainable development across the globe. Advancing inclusive and effective international tax cooperation can address these challenges and foster trust. It can also help countries mobilize domestic resources and support investment in the SDGs.
This UN intergovernmental process can help shape an international tax system that serves multiple purposes. The system must respect countries¡¯ sovereignty and the way markets operate and business is done in our modern world. It must also establish transparent international tax rules and procedures that respond to the needs, priorities, and capacities of all countries.
Distinguished Delegates,
Great strides have been made in international tax cooperation, at the OECD, the United Nations, and in regional and sub-regional tax organizations, that engage all stakeholders in tax systems.
Despite best efforts to address global taxation issues, many developing countries still feel that they have little to no contribution in setting the international tax rules that address their priorities.
This Ad Hoc Committee convenes for the first time, with the mandate to develop draft terms of reference for a UN Framework Convention on International Tax Cooperation.
All UN Member States must make the most of this rare opportunity to develop an instrument that addresses global challenges that are not adequately addressed by existing arrangements, including the priorities of developing countries. Such an instrument would strengthen synergies with existing arrangements.
A framework-protocol approach would not solve all the challenges or create opportunities in international tax at once. Yet, it could lead to increased revenue collection, curb tax evasion and illicit financial flows, and ensure tax is used more effectively as a policy lever for sustainable development in the short to medium term.
I would like to thank the Bureau-designate for its hard work in preparing for this organizational session over the past several weeks, in consultation with Member States through the regional groups.
It is now up to this Ad Hoc Committee, over the next three days, to lay the Committee¡¯s approach, the organizational foundations, and initiate substantive preparations to deliver on its mandate.
The first task before the Committee is electing its officers. The resolution specifies that the bureau of the ad hoc intergovernmental committee shall be made up of not more than 20 members. It shall consist of one chair, one rapporteur, and 18 vice-chairs, elected on the basis of balanced geographical representation and taking into account gender balance, with each of the five regional groups equally represented.
I wish you every success in this session and on the delivery of your important mandate.
Thank you!