21 April, 2025
Bangkok Declaration in Support of a Comprehensive United Nations Framework Convention on International Tax Cooperation
Recognizing the immensity of illicit financial flows, tax evasion, legal but immoral tax avoidance perpetuated by rich individuals and their corporations;
Reaffirming that the power of taxation rests with sovereign states, typically exercised through their respective legislative branches;
Recognizing that among the important matters that need urgent action are aggressive tax planning employed by multinational corporations and the rich, tax havens, corporate taxation, taxation of high net worth individuals, and taxation of the digital economy and e-commerce,
Reaffirming the notion of all developing countries that a comprehensive restructuring of the international tax architecture is the only alternative to the status quo,
Recalling that such a comprehensive and inclusive restructuring process is possible only through the United Nations, where each member state has equal voting power,
Regrettably noting the consistent and unrelenting efforts to undermine the initiatives of the overwhelming majority of UN member states to negotiate and conclude a United Nations Framework Convention on International Tax Cooperation, including attempts to secure carve-outs for wealthy countries—particularly in areas such as the taxation of the digital economy and e-commerce, financial services, and the extractives industry,
Recognizing that the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting correctly concluded that the tax planning strategies used by multinational corporations and rich individuals to exploit loopholes and artificially shift profits to low- or no-tax jurisdictions constitute unacceptable domestic tax base erosion and profit shifting (BEPS).
Realizing however that the Pillar 1 and Pillar 2 recommendation of the OECD/G20 IF on BEPS are wholly inadequate, if not outright counterproductive,
Recognizing that a two-tiered international tax architecture – ostensibly one for the digital economy and another for rest of the other sectors – is unfeasible, given that the digital economy is embedded in practically all sectors of a globalized economy, including services, finance, mining and extractives, construction, and even manufacturing,
Emphasizing the urgent need for a fair and universal mechanism to regulate taxation of the digital economy in a way that does not disproportionately benefit developed countries,
Recognizing finally there is an overwhelming and unwavering support by member-states for a United Nations Framework Convention on International Tax Cooperation,
Appreciating as well the consistent vote of our respective governments in developing countries in supporting the drafting of a United Nations Framework Convention on International Tax Cooperation.
NOW, therefore, the groups and individuals here gathered likewise express their support for a comprehensive reform of the international tax architecture through a comprehensive United Nations Framework Convention on International Tax Cooperation.
Furthermore, we pledge to engage with our respective governments and support their ongoing commitment to the negotiations for a United Nations Framework Convention on International Tax Cooperation.
Signed:
1. Indonesia Tax Justice Forum
2. Labour Education Foundation
3. LDC Watch
4. Publish What You Pay (PWYP) Indonesia
5. Rural Reconstruction Nepal (RRN)
6. South Asia Alliance for Poverty Eradication (SAAPE)
7. The PRAKARSA
8. Third World Network
9. The Fair Budget Campaign – National Confederation of Dalit Organisations (NACDOR), India
