Taxation

ICC comments on zero draft terms of reference for UN Tax Framework Convention

12 July 2024

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Commenting on the UN zero draft terms of reference (ToR) for a UN Framework Convention on International Tax Cooperation, ICC has emphasised the importance of clear, inclusive, and stable tax regimes to promote economic growth and sustainable development.

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The comments will inform the discussions about the UN zero draft ToR for a UN Framework Convention on International Tax Cooperation during the second substantive session of negotiations.

The UN zero draft ToR published in June 2024 sets out the basic parameters and mechanisms of a framework convention, including its proposed objectives, timeframe for negotiations and priority areas to be addressed.

Which concerns on the UN zero draft ToR did ICC raise on behalf of business?

Lack of clarity in the proposed terms and of definitions of key concepts
Need for consensus-based decision-making: This entails buy-in from the broadest number of countries and the involvement of the business community in the dialogue
Need for a structured framework for exchange with the business community

Additionally, ICC stresses

The significance of tax certainty, simplicity, and the avoidance of double taxation
The need for careful consideration of the economic impact of any of the future proposed policies
The importance of collaboration among international institutions to avoid duplication and ensure workable solutions