The current first draft of the UN Framework Convention will likely face strong challenges in gaining broad support, as many states may hesitate to sign due to the legal uncertainties created by the present formulation of the commitments.
In our view, the Framework Convention should remain focused on its core objective: establishing a new, robust framework for international cooperation.
To preserve the spirit of the commitments while allowing for wider agreement among states, we have therefore proposed to include these commitments in the Preamble rather than as binding clauses. This approach maintains the shared vision while providing the necessary flexibility for consensus.
See our proposal as follows:
Preamble
The States Parties to this Convention,
Recalling the purposes and principles of the Charter of the United Nations and reaffirming their commitment to international cooperation and solidarity,
Recognizing that a fair, effective and transparent international tax system is essential for promoting sustainable development, economic stability and social equity,
Affirming that every jurisdiction has the sovereign right to tax income derived from economic activities carried out within its territory or from value created therein, in accordance with other international law obligations,
Concerned that tax avoidance and tax evasion erode national tax bases, distort global competition and undermine public confidence in the integrity of tax systems,
Acknowledging that harmful tax practices disproportionately affect developing countries by limiting their capacity to mobilize domestic resources and finance public goods and services,
Recognizing that effective taxation of Ultra High Net Worth Individuals, whose assets and income often span multiple jurisdictions, requires enhanced international cooperation, coordination and information exchange to ensure fairness and prevent base erosion,
Convinced that strengthened international cooperation, including mutual administrative assistance, exchange of information and coordinated measures to counter illicit financial flows, is indispensable to ensuring fairness and effectiveness of taxation,
Have agreed as follows: