The role of the United Nations in ensuring equitable tax policies for developing countries

Abstract The international tax system has historically marginalized developing countries, leading to economic disparities and exclusion from critical decision-making processes. This paper advocates for creating a United Nations (UN) tax body to ensure more inclusive and equitable international tax governance in furtherance of the Draft Terms of Reference (Draft ToR) for a UN Framework Convention on International Tax Cooperation. It evaluates the existing tax governance structures to create strategies for the formation of more inclusive structures in the future and draws guidance from the Draft ToR. The paper proposes that a UN tax body should facilitate the direct involvement of developing countries in decision-making and agenda-setting processes, ensuring their voices are heard. The paper underscores the potential of regional cooperation, exemplified by Africa’s push for a unified stance on tax issues through the African Continental Free Trade Area and the African Tax Administration Forum. By leveraging existing regional structures, the proposed UN tax body could create a more balanced global tax framework that genuinely represents and benefits developing countries, as envisaged by the Draft ToR. Establishing such a body would be a pivotal opportunity to rectify historical injustices and foster global economic stability through equitable tax policies.