Standoff in Addis Ababa over push by G77 to upgrade UN tax body
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A new set of rules for international trade could be significant, especially for tax authorities in developing countries where multinational firms have been accused of profit shifting and dodging taxes. Kenya Revenue Authority (KRA) is currently locked in hundreds of legal battles relating to tax avoidance by big companies, mostly owing to vagueness on guidelines. Civil societies attending the Financing for Development Conference in Addis Ababa expect that a new tax body that is more inclusive would draft friendly guidelines and enable poor countries to tackle tax avoidance. Since multinationals operate is various jurisdictions with different laws, it is the OECD standards that are used whenever there is a taxation dispute and suspected profit shifting. Tax Justice Network-Africa Executive Director Alvin Mosioma said State representatives now have the chance to create an inter-governmental tax body under the UN that would include more than 100 developing countries excluded from the decision making process. “African nations are at the epicenter of the crisis of illicit financial flows, yet they are not even in the room when decisions are being made,” Mosioma said, adding, “A global tax body is one important step in fixing this global problem.” Self-interest However, speaking during the opening of the conference Monday, UN Secretary-General Ban Ki-moon said world leaders must put aside “narrow self-interest” to break a deadlock over how to finance the organisation’s bold new global development agenda. “Let us put aside what divides us and overcome narrow self-interest in favour of working together for the common well-being of humanity,” he told the delegates.Do not miss out on the latest news. Join the Standard Digital Telegram channel HERE.
