© Reuters.
By Leigh Thomas
PARIS (Reuters) – The Organisation for Economic Cooperation and Development’s leadership on global tax coordination has come under threat after a majority of UN members backed an African-led initiative to bring international tax cooperation to the United Nations.
Many developing countries have lamented for years that they are unable to influence discussions on global tax cooperation at the OECD, where the rules for cross-border taxation are generally thrashed out.
Frustrated their voices had not been heard, on Wednesday 125 mostly developing countries backed a draft U.N. resolution proposed by Nigeria calling for a “framework convention on international tax cooperation”.
Some 48 mostly developed countries, including Britain, Germany, Japan and the United States were against while nine countries abstained, including OECD members Iceland, Mexico, Norway and Turkey.
Welcoming the vote as a “beacon of hope”, the African Union said in a statement that it would “facilitate the access of much needed financial resources”.
OECD head Mathias Cormann said that the 38-member group was “proud of its record of achieving consensus-based solutions” on…
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