Unions and African Nations Press UN for Tougher Global Tax Rules

The Lead Story

Unions, Africa Turn Up the Volume at UN Tax Talks

The tug-of-war over who writes the world’s tax playbook just got louder. As United Nations delegates hash out the framework for a first-ever global tax convention, labor groups and several African governments are demanding rules that close loopholes, curb corporate abuse, and fund climate action. Their message: the status quo isn’t cutting it.

“Workers want a seat at the table and a fair slice of the pie,” the International Trade Union Confederation told ITUC, urging negotiators to craft progressive, transparent systems and widen civil-society participation.

Across the aisle, African finance ministers blasted a recent G7 side deal granting U.S. multinationals relief from the OECD’s 15% minimum tax, calling it proof that “global rules are broken,” according to Bloomberg Law. They argue the carve-out undercuts developing countries already losing an estimated $245 billion annually to profit shifting.

Environmental advocates are piling on. A proposal to make polluters and billionaires bankroll climate repairs “could finally align tax policy with planetary reality,” Greenpeace International reported, pointing to fossil-fuel giants’ light tax bills despite outsized emissions.

Why it matters: The reaction was swift because a UN-led pact would rival — or even replace — OECD dominance in international tax. For multinationals, that could mean new disclosure rules, higher effective rates, and climate-linked levies. For treasury departments in emerging markets, it could unlock billions in desperately needed revenue.

Around the Tax World

• Luxembourg backs substance-over-form. In a landmark ruling on interest-free loans, the Grand Ducal court said economic reality trumps paperwork when deciding if financing from indirect shareholders is debt or equity (International Tax Review).

• China turns the compliance screws. Enhanced data analytics and the Common Reporting Standard are powering Beijing’s new hunt for offshore personal-income gains ( China Daily ).

• Zimbabwe signs on as No. 151. The nation joined the OECD’s Multilateral Convention on Mutual Administrative Assistance in Tax Matters, boosting cross-border information sharing (ZAWYA).

By the Numbers

Prime Number: 151 – That’s how many jurisdictions now cooperate under the OECD information-exchange convention after Zimbabwe’s signature, widening the net on tax evasion.

Looking Ahead

All eyes shift to New York in October when UN delegates reconvene. Expect heated debates over minimum-tax carve-outs and a possible draft article on climate-damage levies.

Prepared by MyTax - mytax.com.ng