The Executive Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami has reiterated Nigeria’s call on the International Tax Community for an inclusive, equitable, fair and universally beneficial international tax system towards the attainment of the 2030 Sustainable Development Goals (SDGs).
He made the call while delivering Nigeria’s Statement at the Economic and Social Council (ECOSOC) Special Meeting on International Cooperation in Tax Matters, held on Friday, at the ECOSOC Chamber, United Nations Headquarters, New York.
According to a statement signed by his Special Assistant on Media & Communication, Johannes Oluwatobi Wojuola, Nami said, Nigerian delegation is concerned about the global minimum tax as put forward by the OECD – Inclusive Framework.
According to him, the Framework was negotiated to benefit the home countries of multinationals because of its low rate.
He said, “My delegation is concerned about the global minimum tax,” Mr. Nami noted, “because of its low rate and the way it was negotiated to benefit the home countries of multinationals, which are mostly in developed countries”.
Nami therefore urges the meeting to discuss how the UN instrument on tax cooperation can both build on work that has already been done in a way that guarantees fairness and equity.
The FIRS Chief Executive said that Nigeria looks forward to views on the enforcement mechanisms for a binding multilateral tax convention.
According to him, both developing and developed countries are having a bad experience with investment treaty arbitration challenges.
He further pointed out that, the capacities of countries to attain the 2030 Sustainable Development Goals were hinged on having the requisite funding in delivering critical public services towards SDGs.
He added that, while Nigeria will continue to call for a global taxation regime under the United Nations as it will enhance domestic resource mobilization among member States to address their economic challenges.
Nami added, “The promotion of inclusive International Tax Cooperation remains a critical subject in the attainment of the 2030 Sustainable Development Goals (SDGs).
“Today a global taxation regime under the UN is urgently needed to enable States effectively mobilize domestic revenues to address the multiple economic and other crises impacting our efforts in the achievement of the 2030 SDGs.
“Domestic public resource mobilization is critical to this effort because of its vital role in delivering critical public services and advancing even progress towards the sustainable development agenda.
“Developing countries are taking seriously the challenge of financing sustainable development. My delegation underscores the importance of enhancing domestic resource mobilization, good governance and investment in our common African goal embodied in the Agenda 2063, and in the global goals spelled out in the 2030 Agenda,” Mr. Nami stated.
He commended African countries for strengthening their participation in international tax cooperation efforts, as well as the strides they have made “in closing loopholes and countering base erosion and profit shifting.”
Nami however expressed concerns that “while much good work has been done, much more remains to be made towards a fully inclusive process, both domestically and internationally and ensuring that all taxpayers are making their fair contributions.
The United Nations Economic and Social Council (UN ECOSOC) Special Meeting on International Cooperation in Tax Matters is an annual meeting of ECOSOC members, senior representatives of national tax authorities, relevant international organizations, civil society and academia that discusses issues of taxation as it affects the globe. Members, during this meeting, deliver action-oriented exchanges and design best-practices on international tax issues.
This year’s meeting provided a forum for member states, members of the UN Tax Committee, international organizations and other stakeholders to discuss on the promotion of inclusive and effective international tax cooperation at the United Nations.