Taxation – the Need for a Multinational Set of Agreements.

Ecommerce businesses relying on imported supplies or cross-border ecommerce can face confusion over where taxes are levied, this usually results in extra costs to the ultimate consumer. It was a point stressed in EFSA’s presentation to the DTIC’s Growth Dialogue (see below). The UN Economic Commission for Africa (ECA) and the South Center held a virtual event in September to inform member states of the G77 and China about the critical issues in the ongoing discussions related to the reform of international tax cooperation. A total of 92 delegates from Africa, Asia, and Latin America, attended the briefing.

The purpose of the virtual meeting was to raise awareness of the UN Secretary-General’s report on promoting inclusive and effective international tax cooperation at the UN, which was mandated by the UN General Assembly in Resolution 77/244, tabled by Nigeria on behalf of the Group of African States. The report examined existing arrangements, suggested enhancing the UN’s role in tax norm shaping and rule setting, and identified 3 viable options: a multilateral convention on tax, a framework convention on international tax cooperation, and a framework for international tax cooperation. At present the main international forum for discussion on tax has been OECD, which is overwhelmingly a club of the developed countries.