Thread by @FaccioTommaso

When the @UN tax committee challenges the status quo, the push back starts. This is about power and politics 1/n

https://twitter.com/IrsRajat/status/1370162608326635523

What is the crux of the matter? The UN tax committee has recently voted a solution to tax automated digital businesses to be part of the United Nations Model Double Taxation Convention, which countries can use to negotiate double taxation treaties 2/n

It provides a simpler option to tax digital services (either through a withholding tax or formulary apportionment) and importantly an alternative to what currently being discussed at @OECDtax Inclusive Framework ft.com/content/c2a680… 3/n

This proposal has received support from many, from the @FACTIpanel 4/n

to both the @WorldBank & @IMFNews staff 5/n

https://twitter.com/FaccioTommaso/status/1362503539885498369?s=20

The solution was approved last year, but it wasnt based on a unanimity vote, but majority. The UN tax committee membership represents 25 countries. Guess which countries voted for it/against it? 6/n

Countries in the Global South are a majority and voted in favour, countries in the Global North are a minority and voted against. Which makes sense, countries in the Global North benefit from status quo, countries in the Global South don't 7/n un.org/development/de…

But the process is transparent, each country expressed its vote, for or against and it is one country one vote. The final text of the article will be voted in April, but as you can see the push back is started. 8/n

If this article is finally approved, it will prove that countries in the Global South can advanced their positions by joining forces, both at UN tax committee & at the OECD Inclusive Framework, where G-24 has forged a common negotiating position for its membership. 9/n

It may even provide the impetus for an the upgrade of the UN tax committee to a inter-governmental body, one of the recommendations of the @FACTIpanel final report. factipanel.org, something 10/n

Countries in the Global South have been calling for years, but in 2015 guess who stopped them..11/n..theguardian.com/global-develop…

There is no final victory, as there is no final defeat. There is just the same battle. To be fought, over and over again. When this article makes it to the model convention, it will feel like a victory for many who wants the UN to have a voice on tax 12/n