OECD has traditionally been the standard bearer for tax policy — with rules set for decades by high-income economies. But the United Nations’ recent resolution on tax cooperation opens the door to forum shopping for countries worldwide and has the potential to benefit low- and middle-income countries.
Late 2022, the U.N. General Assembly adopted an inclusive and effective tax cooperation resolution. In March, the U.N. closed their public consultation on the matter after receiving inputs from an array of stakeholders, and the secretary general will compose a report to be released this September.
The U.N.’s foray into tax governance has triggered mixed reactions among global audiences. Some see this as a historic step toward a fairer international economic system, given the weight of the United States and the European Union at the Organisation for Economic Co-operation and Development. Nigeria initially submitted the resolution on behalf of the 54-member African group of states. Others are more circumspect. Dutch Secretary of Finance Marnix van Rij voiced opposition to the resolution, saying, “The government does not yet see any added value in creating a negotiating forum” alongside the OECD also focusing on international tax issues.