NFTC Vice President Anne Gordon last week delivered remarks at the meeting of the Ad Hoc Committee to Draft Terms of Reference for a United Nations Framework Convention on International Tax Cooperation.
The remarks, as prepared for delivery, can be found below.
Remarks from Anne Gordon (NFTC) at the Ad Hoc Committee to Draft Terms of Reference for a United Nations Framework Convention on International Tax Cooperation
May 1, 2024
As prepared for delivery
- Thank you, Madam Chair
- My name is Anne Gordon, Vice President for International Tax Policy at the National Foreign Trade Council and I appreciate the opportunity to provide input on these important discussions and for today’s dedicated feedback session.
- Founded in 1914, the NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.
- Our members value transparency and rules – and I’d like to address that topic as part of the Ad Hoc Committee.
- We would like to support the statements from several countries including US, UK, Canada, Singapore, Germany and others encouraging consensus for developing protocols and the convention. We understand that ultimately each country will have the ability to vote yes or no on the final product under the General Assembly rules. However, we are concerned that without consensus decision-making, there won’t be sufficient buy-in and we will be left with a fragmented international tax system that will be detrimental to global trade and investment by MNEs, and in particular to emerging and developing countries.
- We support efforts to create a system that is more inclusive but we believe that widespread adoption will be essential – and a consensus approach will help achieve that goal.
In order to achieve this, we suggest that this committee develop and communicate transparent processes, including sharing of documents and other information for feedback from delegates and stakeholders. We would appreciate sufficient notice of meetings and publication of the tentative agenda – NFTC was grateful to be approved, but was only notified last week. Without notice and transparency, it is difficult to follow and understand the proceedings and to provide constructive input.
- As documents are drafted – including the terms of reference, protocols, and eventually a convention- we request a clear process so that stakeholders, including the business community, can provide input. The process for input should be posted on the UN website and stakeholders should be given reasonable amounts of time to provide such input ideally at least a month.
- We also highly recommend the Committee consider creating a business advisory group to allow for consistent dialogue. An international tax system should work for both governments and taxpayers. As noted by the ICC, the business community can provide invaluable insights into the practical aspects of taxation for those affected, including the impact to different business models, investments and complex value chains.
- We also believe the international tax framework convention should ensure that there is no double taxation and no discriminatory treatment of industries.
- Our members need tax certainty as well as an international tax system that is stable, rules-based, and administrable. Without these key tax principles, there will likely be an increase of disputes and complicated compliance which are costly to both tax administrators and taxpayers.
- As the international tax framework is developed, we urge countries to prioritize pro-growth policies that help encourage investment and ensure that there is no double taxation.
- Thank you.
