Nigeria backs UN tax system for member of states

Nigeria on Wednesday urged Member States to support the proposed resolution for a global Tax Convention that aims to establish a more equitable taxation system worldwide.

The Permanent Mission of Nigeria to the United Nations, in a statement, made available to the News Agency of Nigeria (NAN) in New York, called for continued support toward a comprehensive UN Tax Convention.

Recall that during the 77th session of the United Nations General Assembly (UNGA), Nigeria introduced a significant resolution titled “Promotion of Inclusive and Effective International Tax Cooperation at the United Nations’’.

The resolution established the groundwork for developing a comprehensive international tax cooperation system with a universal reach and approach.

For the first time, member states have come to a consensus to institute a convention for tax cooperation and to hold yearly deliberations on global tax issues, while reviewing their advancements.

The African Group of States, consisting of 54 members and represented by Nigeria, successfully introduced a motion that was adopted by consensus, despite prior discussions on a failed amendment.

“The Africa Group building on the adoption of resolution 77/244 on the “promotion of inclusive and effective international tax cooperation at the United Nations”, has put forth a proposal for a comprehensive UN Tax Convention.
“We call on all Member States to endorse this crucial initiative aimed at tackling tax evasion, illicit financial flows, and ensuring a fairer taxation system within and beyond national boundaries.

“The proposed UN Tax Convention offers an inclusive and transparent avenue for meaningful reform, vital for fulfilling UN commitments on Sustainable Development Goals (SDGs)

“We reiterate our call for immediate, collective action. The world cannot afford further delays in addressing this urgent issue,’’ the Mission stated in a statement.

More Insights

Earlier, Nigeria’s Ambassador to the UN, Tijjani Muhammad-Bande, stated that Nigeria’s dedication to advancing talks on tax conventions will persist throughout the 78th session of the UN General Assembly (UNGA).

Muhammad-Bande stressed the importance of this resolution in the context of financing for development, underscoring the connection between taxation and illicit financial flows.

“We are just at the beginning of the process, now that it has been mandated that something be done

“What will happen now is to sit down and see what can be done to ensure that such a convention or treaty is arrived at.

“That will be a lot of negotiations; countries, blocs, coalitions, but by and large, globally, it is understood that it is important to have a binding document relating to taxation that looks at the interest of all parts of the world at the same time,’’ he said.

It is important to note that the General Assembly is the main policy-making and representative organ of the United Nations.

The assembly consists of delegates from 193 Member States and various entities who convene in dedicated sessions to deliberate on pressing global issues.

What You Should Know

The UN Conventional Tax System is a double tax treaty aimed at preventing unrelieved double taxation, to foster cross-border economic activity and the transfer of technology.

Countries generally use models as a starting point when negotiating tax treaties.

As the UN Model Double Taxation Convention between Developed and Developing Countries generally favours retention of greater host country taxing rights, it tends to be relied upon more by developing countries than the OECD Model Tax Convention on Income and Capital.

The UN Model Taxation Convention consists of articles on the treaty’s scope and definitions to be used in the treaty.

For different kinds of income and capital, it allocates taxing rights before establishing how double taxation will be eliminated where the taxing rights are shared.