ICC Comments on the Platform for Collaboration on Tax Draft Toolkit on Tax Treaty Negotiations

ICC commends the work done by the PCT on the Toolkit which provides a comprehensive overview of the nature and negotiation process of tax treaties with useful references to existing work such us the UN Manual and the OECD/UN model tax conventions.

ICC welcomed the opportunity to provide comments on the Platform for Collaboration on Tax (PCT) Draft Toolkit on Tax Treaty Negotiations (Toolkit) designed to help developing countries build capacity in tax treaty negotiations, and which serves as a joint effort to provide capacity -building support to developing countries on tax treaty negotiations, building on existing guidance, particularly from the UN Manual for the negotiation of bilateral tax treaties between developed and developing countries (the “UN Manual”).

ICC commends the work done by the PCT on the Toolkit which provides a comprehensive overview of the nature and negotiation process of tax treaties with useful references to existing work such as the UN Manual and the OECD/UN model tax conventions. ICC believes that the PCT consultation is a useful opportunity for stakeholders to make the case for the existing benefits of tax treaties, including the business community as well as developing countries who would welcome and benefit from additional guidance and capacity building in this respect.

ICC encourages the PCT to continue to pursue this work, with a view to producing practical and useful guidance for developing countries in order to better equip them to participate on an equal footing in tax treaty negotiations. ICC considers that this Toolkit is a great opportunity to promote the negotiation of tax treaties as a tool for both countries and taxpayers to achieve greater tax certainty.

ICC notes that the overall tone of the document appears to be inclined towards the drawbacks of tax treaties rather than potential positive implications, highlighting several examples. ICC would recommend addressing these issues with a more balanced perspective.

It is ICC’s view that the Toolkit could be improved by taking a more balanced approach, as the enhancement and promotion of this process and its outcome is viewed as a win-win for all stakeholders.

ICC provided additional comments on specific sections of the Toolkit.

ICC advocates for a consistent global tax system, founded on the premise that stability, certainty and consistency in global tax principles are essential for business and will foster cross-border trade and investment.

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