Summary
Current global tax rules are deeply unjust. Countries, particularly from the Global South, cannot adequately tax profits generated in their economies due to an unfair allocation of taxing rights and rampant tax abuse. The OECD also known as the “rich countries’ club” – has been the primary institution where global tax rules have been formulated. That is, where norms and standards had been set; the negotiations leading to them had been conducted behind closed doors without transparent and publicly accessible decision-making processes. The majority of developing countries are not members of the OECD which excludes them from sitting at the OECD’s negotiating table as equals. And what is decided without universal participation cannot have the legitimacy for universal application. It is time to rewrite the global tax rules through a UN Tax Convention so that all countries can negotiate fair, effective, and efficient global tax rules on equal footing.
