This resolution did not provide sufficient reassurance for our concerns: UK Explanation of Vote at the UN Second Committee
Explanation of vote by Tara Soomro, Ambassador to ECOSOC, at the UN Second Committee on the International Tax Cooperation.
Chair, the United Kingdom voted ‘No’ on this resolution.
We have been a strong advocate of international tax cooperation, to enable the participation of a broad range of jurisdictions and collaboration of different International Organizations in addressing global policy challenges.
We have championed efforts to combat Base Erosion and Profit Shifting, increased tax transparency through the Automatic Exchange of Information and via HM Revenue and Customs’ capacity-building partnerships with developing countries.
We believe there is a role for the UN to play in international tax cooperation and we recognise the desire to make progress on this. We will continue to engage constructively with these negotiations.
From the outset, we set out what we see as the crucial principles for this work to be effective and inclusive. We believe decision-making should be based on broad consensus, to ensure that any outputs are widely implemented and maximize participation. And we need to ensure that a Framework Convention will not undermine existing tax rules.
In July, we made six proposals for changes to the zero draft of the Terms of Reference, none of which were reflected in the final text. While we welcome flexibility shown in this resolution, neither the Terms of Reference nor this resolution provide sufficient reassurance on our concerns.
In addition, we are concerned about the programme budget implications. During negotiations, we and other delegations had a number of questions, however these were not resolved. Full costs were only shared this week once negotiations had concluded. We need more robust consideration to understand the implications of this resolution, and will reflect our concerns in the Fifth Committee.
We will continue to work actively with all of you and be constructive and collaborative in considering how to accommodate different perspectives.
We hope that we can all deliver a positive contribution to international tax cooperation.