Africa pushes for stronger UN global tax rules as North-South divide deepens

African countries are pressing for a more ambitious United Nations framework on international tax cooperation, calling for reforms that would expand taxing rights for developing economies, curb illicit financial flows and strengthen domestic resource mobilisation as negotiations enter a decisive phase in New York.

The debate is unfolding during the fifth session of the Intergovernmental Negotiating Committee (INC), which is drafting the first comprehensive UN Framework Convention on International Tax Cooperation.

At the centre of the negotiations is whether the convention should simply complement the existing international tax syste or fundamentally reshape it to give developing countries a greater share of taxing rights over economic activity occurring within their borders.

Representing the African Group, Zambia said the draft convention should remain consistent with the negotiating mandate adopted by the UN General Assembly, arg uing that reopening its objectives could weaken the agreement’s original intent. Kenya, Nigeria, Côte d’lvoire, Senegal, Ghana, Algeria, Tanzania and Burkina Faso backed that position.

The European Union and several developed countries, however called for stronger recognition of the existing international tax architecture, arguing that the convention should complement rather than replace current agreements while preserving legal certainty.

A major point of contention is Article 5, which deals with the allocation of taxing rights. African countries want taxing rights to be based on where economic activity and value creation occur, saying current international tax rules disproportionately favour wealthier, capital exporting countries.

They are also seeking binding commitments req uiring countries to implement reforms, renegotiate tax treaties where necessary and adopt domestic legislation, replacing softer language that asks governments only to “explore” or “pursue” such measures.

Several developed countries, including Germany, the United Kingdom, Belgium and Luxembourg, expressed concern that such provisions could create legal uncertainty or duplicate existing international tax arrangements, arguing that detailed rules should instead be developed through future protocols.

African negotiators are also pushing for stronger commitments on taxing high-net-worth individuals, combating tax-related illicit financial flows, eliminating harmful tax practices and improving cross-border exchange of tax information.

The African Group wants countries to commit to implementing concrete measures against tax avoidance and tax evasion, arguing that illicit financial flows deprive developing economies billions of dollars needed for public services and infrastructure.

Many developed countries have opposed broader definitions of illicit financial flows, arguing that lawful tax avoidance should not automatically be classified as illicit and calling for clearer legal distinctions.

The negotiations have also exposed disag reements over the UN’s future role in global tax governance. African countries want the convention’s Conference of the Parties to establish universal standards on harmful tax practices, while several developed nations favour building on rules already developed through existing international institutions.

African countries further oppose removing provisions on information exchange, saying effective cooperation between tax authorities is essential to tackling cross-border tax evasion and enforcing fair taxation of multinational companies and wealthy individuals.

Civil society organisations, including the African Civil Society Working Group on the UN Tax Convention coordinated by Tax Justice Network Africa, say the negotiations present a rare opportunity to address longstanding inequalities in the international taxsystem and enable developing countries to mobilise more domestic reven ue for sustainable development.

The outcome of the negotiations is expected to determine whether the convention becomes a largely coordinating framework or a legally binding instrument capable of reshaping global tax rules in favour of a more inclusive international tax system.