I believe that international cooperation is important in tackling global tax challenges, and I urge Ministers to actively engage with the Organisation for Economic Co-operation and Development (OECD)'s and the UN’s work on tax policy.
It is vital that international tax rules and standards are effective as well as inclusive. To this end, the previous Government supported consensus-based reform of the international tax rules through the OECD, including through the G20/OECD Inclusive Framework (with over 130 members) and the Global Forum (with over 160 members), in which non-OECD members participate on an equal footing. This reflects the strong expertise that sits within the OECD and the steps taken in recent years to become ever-more inclusive of the needs of developing countries.
I believe the current Treasury Department agrees that, ‘ a UN Tax Framework Convention has the potential to further advance international tax cooperation, but to be successful, it needs to be clear in its aims, avoid duplicating existing initiatives, and seek to secure the broad support and participation of members.
The UK was disappointed that these principles were not fully reflected in the Terms of Reference agreed by the UN Ad Hoc Committee in August, but will continue to engage constructively in support of key principles for strengthening international tax cooperation.’
Written Answer 21.10.2024 Written questions, answers and statements - UK Parliament
Regarding the UK, I welcome that, between 2010 and 2024, the amount of unpaid UK tax (the tax gap) fell from 7.5 per cent to 4.8 per cent. I am, however, concerned about the Government's commitment to further reducing the tax gap. In addition to offering piecemeal investment and an increase of compliance officers, this Government must set out comprehensive measures to crack down on non-compliance.
