UN Transcripts — https://transcripts.un.org/ar/asset/k1e/k1eids4k5b (8th meeting) Intergovernmental Negotiating Committee on the United Nations Framework Convention on International Tax Cooperation - Fourth Session — Economic and Social Council — 6 February 2026 Language: en Automatically generated transcript — may contain errors. Not an official United Nations record. --- Chair [0:01]: Good afternoon colleagues. We all welcome to the. Final session for Work Stream one for this particular session and we have one item that we are going to look at and that's the item Article 12 on capacity building and tech assistance. So we basically drafted this article based on the discussions we had in Nairobi and as part of what's in it we look at what already exists in terms of capacity building. Both enter crowd support among Member States and other technical institutions. And based on that we had some initial document which we will discuss this afternoon and what we currently have. Five paragraphs that looks at. I won't be reading it out, but then generally it talks about what we expect state parties to do and how we can best cooperate on it. And so with that I believe we've had time to look through it and we can come out with our suggestions and our comments on this particular article to enable us refine it and conclude some discussion, initial discussions on it and then conclude sometime during the work streams in preparation for August. So we would welcome comments from Member States. 20 but let's go on. Unless Member States are satisfied with what we have there and they don't see the need for us to. Ah, okay, Sweden, please. Sweden [3:02]: Thank you so much Kohli for giving me the floor and happy Friday afternoon colleagues. Sweden is glad to have had extensive capacity building within the taxation area, including peer to peer learning that has provided many lessons learned and shared experiences. And we believe that capacity building is an important part of international tax cooperation and we support an article on this and technical assistance in the Framework Convention. An essential part of this which also aligns with Sweden's support within the broader aspects of financing for development and the integrated national financing frameworks, is that capacity building is demand based and that it aligns with the national priorities of partner countries. A lot of different capacity building measures are also carried out together with different regional and international organizations. So we fully agree that it's crucial that these projects are coordinated so that they are as efficient as possible. We also understand that access to information is important in this regard and that this might be an area where capacity building project in many different forms could be helpful. So therefore at this stage we are hesitant to include formulation that limit what would otherwise be a flexible approach to the potential targeted areas. Some examples could of course be mentioned in this article, but we need to be able to have a dialogue on the needs and specify these later on. So in detail. We are of the view that paragraph one would be better placed somewhere else in this Framework Convention rather than as a standalone paragraph under this article in this context, we would also suggest adding language on evaluation of the results achieved with targeted capacity building so that we can measure the effects in a long term and sustainable way. Lastly, we would also appreciate some further background and explanation on how paragraphs 4 and 5 should be interpreted in this article. Thank you. Chair [4:52]: Thank you Sweden Belgium Please Belgium [4:57]: thank you Collette for giving me the floor. Belgium, just like Sweden, recognizes the important role of capacity building and technical assistance for developing countries and we support this by providing expertise for enrollment of programs of international organizations, amongst which UNDP's tax inspectors without Borders and through our own bilateral work with partner countries. We are also currently strengthening cooperation to meet the growing demands for tax related support. As we are well aware, the needs are high and we need to step up our efforts now on the article. We see this article as a good overall basis for enhancing capacity building in domestic revenue mobilization as an important contribution to Sustainable development goals. Paragraphs 1 and 2 rightly address both the support required for the implementation of commitments under this Framework Convention and its future protocols and the strengthening of tax policy capacity needed to ensure a general level playing field for inclusive decision making. Paragraph three correctly highlights the need for coordination, to one hand avoid duplication and on the other hand address needs that remain unmet. However, the reference to specific topics in paragraphs B and C seems a bit out of place in this article on capacity building. We believe capacity building and technical assistance has to be demand driven and this is best served by keeping the scope as broad as possible. By highlighting certain topics and therefore not highlighting others. It looks like we're prioritizing some topics over others. It's in our view up to the state parties to do decide which areas they want to strengthen and what their specific pressing needs are. The Sevilla Declaration requests countries to double the capacity building support given to developing countries, aiming for developing countries to increase their tax to GDP ratios to at least 15%, giving the diversity of developing countries the areas that need to be strengthened in order to get to this 15% tax per GDP ratio will also be very diverse and will depend on the concrete circumstances of each developing countries. Belgium would therefore ask to remove paragraphs B and C in order to keep the scope for assistance as broad as possible. Thank you. Chair [7:18]: Thank you. Belgium Russian Federation Please. Russian Federation [7:23]: Thank you very much Mr. Kohli for giving us the floor. We value very highly the efforts here and we're grateful for the development of Article 12 on such an important topic, capacity building and technical assistance. This article underscores how important it is to ensure that all countries should be able to contribute toward developing norms and maintaining them. But we are thinking that capacity building should not be limited to just the issues of time tax policy as we have in subarticle 2. What is important is to take into account the needs of tax administration, including operational, procedural and the institutional aspects and needs. Limiting our focus just with the tax policy would be insufficient to overcome the existing gaps in implementation of rules, especially for developing countries. We therefore propose that this article very clearly should also address the issue of the issues of tax administration. Includes enhancing the effectiveness of tax administration. Also, one small comment on subarticle 1 of the article, paragraph 1 has a mandatory nature and that seems excessive here because it's not entirely clear what kind of obligations are being imposed on countries. First and foremost, take into account that the technical assistance programs in principle are voluntary in nature. That's all at this stage. Thank you very much. Chair [9:14]: Okay, thank you. Russia, Norway, please. Norway [9:20]: Thank you. Mr. Koolaid. Capacity building is essential to ensure that all countries and especially developing countries can effectively administer and enforce domestic and international tax laws and policies. The building tax capacity strengthens accountability and enables countries to mobilize resources and participate in international cooperation on an equal footage. Norway is happy to say that we have provided long standing support for capacity building projects in the tax administration and we plan on continuing and increasing this support in the years to come. In line with the commitments in the compromise of the Sevilla. We would like to echo Sweden's comments that it is an important part of international task cooperation and with the therefore believe that capacity building has a place in this Convention. More specifically though, we believe that paragraph one does not belong in this article as it states more general principles and I think this needs to be further discussed. Paragraph two raises important considerations, but we wonder whether this is more preamble language than a language that should be expressed in the commitment itself. We also had some questions about the last paragraph which seems to go into the issue of relationship with other agreements and perhaps this is also less has lesser home here because it goes into the discussions we will probably have later on. Thank you. Chair [11:13]: Thank you. Thank you. Norway, China, please. China [11:19]: Thank you. Kohlid. First, we agree that capacity building and the technical assistance are essential for inclusive and effective international tax code cooperation. China has consistently supported and has actively implemented concrete measures to assist developing countries in strengthening their tax administration capacities and will continue to do so. Second, we think the first paragraph, which affirms the fundamental implementation obligation of all states parties, falls outside the specific states thematic scope of this article, which is dedicated to capacity building. We therefore Propose this content be relocated to a dedicated article on general obligation or implementation or integrated into the preamble. Third, drawing reference from provisions on capacity building and technical assistance in other UN conventions such as the UN Convention against Corruption, we suggest that the article should clarify a coherent logic for capacity building. We think this can be structured along three pillars, not two pillars. First, I think it is the primary responsibility of State Parties. Efforts to strengthen their own capacities and specific contents of capacity building should be clarified in this part. And second, the supports provided by developed and other countries in a position to do so to State Parties in need. And the third, a coordinating and facilitating role for the Conference of the Parties and the Secretariat. We think organizing the article in accordance with this structure can make the Article clear, legitimate, balanced and practical. We can provide a draft text for consideration later in the form of written comments. Thank you. Chair [13:33]: Thank you. China, Germany, please. Germany [13:41]: Thank you, Mr. Kohlid. I wasn't expecting. But anyway. Gonna push my lunch aside. Well, thank you, Mr. Kohlid. Capacity building and technical assistance are also now overview fundamental to ensuring that all jurisdictions jurisdictions can participate effectively and equitably in the international tax system. We take this commitment very seriously, having implemented a wide range of initiatives to date and we remain fully determined to further expand these efforts in future. This statement made in paragraph one is also in our view very broad and general. It is relevant not only for the capacity building and technical assistance which is to be addressed under the Article, but it addresses the implementation of the entire Convention. We believe that such general statements regarding obligations should instead be mentioned or addressed in the general provision. For example, this could be suitable placed under Article 25 alongside the provisions on reservations. We strongly support the emphasis in paragraph 2 on the need to take into account the different needs, priorities and conditions capacities of all countries to enable meaningful contributions to the norm setting processes at all stages. Finally, we welcome that capacity building measures and the provision of technical assistance are to be carried out in a coordinated manner. We strongly encourage that. With that I thank you and thanks for your understanding. Chair [15:19]: Thank you, Germany. I think you can continue your lunch now. Zambia, please. Zambia · Africa Group [15:29]: Good afternoon and thank you. Chair, speaking on behalf of the Africa Group. Capacity building and technical assistance is one area we see to be very fundamental in enhancing domestic resource mobilization and it's a key component in international. In enhancing international tax cooperation. Noting the various international instruments that are coming up and the new tax architecture that is coming up and we believe that we will come. That is actually an article in the Convention to address this aspect. We have looked at the text and as others have indicated, we have some reservations on public paragraph one, but notwithstanding that we have some text that we shall share. I won't read out the text, but some text that we shall share, like where we've been sharing the text, key issues that we believe should be covered, and some of them have been covered in the text as provided. Obviously, we believe that capacity building should be as broad enough, not only on providing information, but we believe that secondments, peer learning, transfer and acquisition of knowledge, skills, technology are very fundamental. Strengthening international institutional arrangements is key. We believe that capacity building should be sustainable countries that are receiving it and therefore when we look at the text, there are some elements we feel the text has, not that there are some elements we've seen that have not been covered. And therefore we've tried to elaborate that in a text that we shall share for all. But. IAHWG · Co-Chair [17:28]: Excuse me, Zambia. Yes. In order for us to include the text in the response, as we've been doing, you need to present the text here. Chair [17:38]: So you need to read it out, then you can forward it for posting. So you have to read out the text. Zambia · Africa Group [17:47]: Thank you, Dr. Chair. With your guidance, I'll proceed accordingly. Members and fellow delegates shall indulge me those who try to write. Probably you may miss me. It's quite a number of texts that is before me, but I'll proceed as guided. So we have a number of paragraphs. I think we have four paragraphs, although the longest paragraph is two. The proposed text for paragraph one reads, State Parties commit to cooperate to strengthen their capacity in tax matters, taking into account the needs of developing countries and countries in special situation paragraph 2. Such cooperation shall promote the transfer of technical, scientific and legal expertise and technology to strengthen international tax cooperation and capacities of Parties to effectively administer taxes, discharge the obligations or commitments arising from this Convention, boost domestic resource mobilization and drive accountability in the use of mobilized resources. The measures shall include, inter alia, a Establishment of institutional mechanisms to support Member States, especially developing countries, and their efforts to build capacity on relevant international tax practice and related issues, to ensure that they have adequate capacity to participate effectively in international tax cooperation and to implement the Framework Convention. B. Facilitate the development, transfer and acquisition of technology, knowledge, skills, capacity and expertise related to international tax cooperation and tax administration, including through peer learning, exchange programs and secondments. C Promote and cooperate with relevant national, regional, all international organizations in the development, application and transfer of technologies, skills, practices and processes that boost efficiency in tax administration and to control, reduce or prevent tax evasion, aggressive tax planning and illicit financial flows. D. Assist upon request in the development of a strong legislative foundation as well as technical programs, including those on prevention of harmful tax practices, unhealthy tax competition, aggressive tax planning, tax evasion and illicit financial flows. E. Assist, as appropriate in the development of institutional framework for effective tax administration and to combat harmful tax practices, unhealthy tax competition, aggressive tax planning, tax evasion and illicit financial flows. F. Setting up data analytics and exchange of information frameworks, including the procurement and deployment of the requisite technology. G. The development and implementation of tax education and training programs, including the strengthening of national institutions on tax and the exchange of secondment of personnel to train experts in this field, in particular for developing countries. H. Enhancement of financial and material assistance to support capacity building and technical assistance generally. I. Where necessary coordination of technical assistance or capacitation program for Member States from various stakeholders in a manner that ensures efficient use of resources, avoids undue duplication of efforts and boost impact. I move to paragraph three. To the extent possible, these measures shall be without prejudice to existing foreign assistance commitments or to other financial cooperation arrangements at the bilateral, regional or international level. And the last paragraph, State Parties may conclude bilateral or multilateral agreements or arrangements on material and logistical assistance, taking into consideration the financial arrangements necessary for the means of international cooperation provided by this Convention to be effective. So this is our proposed text from the Africa Group and like I indicated in my opening remarks, we're trying to ensure that it's as it's as broad as possible, covering various areas and different forms of technical assistance and capacity building, and also to ensure that there is sustainability in terms of training experts and ensuring that secondments and peer learning are one of the means of ensuring that the technical assistance and capacity building is enhanced to achieve not only the objectives of the Framework Convention, but ultimately enhance international tax cooperation and domestic revenue mobilization. I submit. Chair on behalf of the Africa Group. Chair [22:52]: Thank you, Zambia, Saudi Arabia, Please. Saudi Arabia [22:58]: Thank you, Khalid. We believe that capacity building and technical assistance is an essential part of the Framework Convention, and we believe that the Article should prioritize practical, accessible tools and simplified implementation measures. As a general comment, we feel that the Article will would be practically useful and work for all jurisdictions if it gives general or broad provision to support countries with legal infrastructure under this Convention instead of detailed provision that may not achieve the needed benefits for building capacity and receiving technical assistance. More specifically, we would like to seek clarification on paragraph 1. The intention of paragraph 1 is not clear to us. Our understanding is that if the Convention is ratified, it would be sufficient enough to achieve the purpose or objective of this Paragraph. So that's a point of clarification. Thank you. Chair [24:01]: Thank you. Saudi Arabia. Question. Well noted. India, please. India [24:11]: Thank you, Chair. We recognize that capacity building is a vital element for achieving the objectives of the proposed Framework Convention. In this regard, we agree with the intent reflected in the draft provisions of the Article, including references to financial, technical and material assistance, considering the various needs, priorities and capacities of all countries. India has consistently been a frontrunner in its commitment to capacity building initiatives across various multilateral fora, including the United nations, and strongly supports strengthened international cooperation in this area. At the same time, we believe that the provisions under this Article could be summarized and streamlined to make them more concise and emphatic while retaining their substantive value. Also, aligning with the comments made by Zambia, China and Germany, we note that the language in paragraph one appears to be general in nature and reads more like an overarching enabling provision rather than one specifically focused on capacity building. While we fully acknowledge the importance of such enabling language and agree that it should be retained in the Framework Convention, but we suggest that it may be more appropriately placed or reframed outside this particular Article. Accordingly, we propose that this Article be modified to focus more directly on concrete capacity building commitments, while preserving the broader enabling provisions elsewhere in the Convention. Thank you, Chair. Chair [25:57]: Thank you, India, Peru, please. Peru [26:04]: Thank you very much, Mr. Chair, for giving me the floor in Peru's case. We would like to thank you for the opportunity to speak about the importance of capacity building and technical assistance in this Convention, especially taking into account how relevant this issue is to make that cooperation that international tax collection. Now, having said this, our preference would be to have greater clarity on what commitments Member States would be taking on based on this Article, especially taking into account the budgetary limitations that developing countries are currently facing. Thank you, Chair. Chair [26:48]: Thank you, Peru. Sierra Leone, please. Sierra Leone [26:52]: Thank you, Khalid. Thank you, Chair. Sialo associates itself fully with a statement delivered by Zambia on behalf of the African group on Article 12 capacity building and technical assistance. We consider Article 12 to be foundational to the Convention as the effective implementation of all substantive obligations depend on the availability of adequate and sustainable sustainable capacity in developing and least developed countries. Without effective capacity building obligations elsewhere in the Convention risks being inequitable in practice. Ciloan supports the African Group's position that capacity building and technical assistance must be integral, predictable and treated as a shared responsibility of all States Parties rather than as voluntary or ad hoc supports. We emphasize that capacity building should be broad in scope, encompassing legal and regulatory frameworks, institutional strengthening, human resource development and digital infrastructure for tax Administration. Sialun further supports the explicit prioritization of developing and least developed countries and stresses that assistance should be demand driven, tailored to national circumstances and aligned with domestic development strategies. We support a UN coordinated approach to capacity building and technical assistance, including the promotion of south and regional cooperation to ensure inclusivity, coherence and sustainability. Finally, Sialun underscores that Article 12 underpins the effective implementation of of other provisions of the Convention including exchange of information, dispute resolution and international cooperation in tax matters. We therefore Support strengthening Article 12 in line with the African Group's proposal to ensure it delivers meaningful long term and equitable capacity support. Thank you Chair. Chair [29:03]: Thank you Sierra Leone, Nigeria please. Nigeria [29:06]: Thanks colleagues and good afternoon to everyone. I do not intend to speak for too long because it appears there is a good convergence around capacity building and technical assistance and that is a good one because it is actually desirable for effective implementation of the Convention and also the improvement in tax arena generally. So we cannot therefore overemphasize the importance of capacity building and technical assistance, but it must be tailored to meet the varying needs of all jurisdictions that may require it. Because at any point in time not only developing countries may require assistance, other jurisdictions may also be in need or in want of it at one point or the other. So the capacity building and technical assistance must therefore be targeted, it must be resort driven and the impact must be measurable so that at the end of it we could measure and say this is indeed what we see set out to achieve and we have achieved it. We agree with the comments raised by many delegates regarding paragraph one. We do not see it as relevant to article 12, but we take solace in the speech that Zambia has presented on behalf of the African group because that is a suggested draft to replace the entire article. So Nigeria aligns with the statement made by Afghan group and other who has spoken in support of that. Thank you Chair. Chair [30:59]: Thank you Nigeria, Singapore, please Singapore [31:05]: thank you Kohlid for the opportunity to speak. Singapore recognizes that capacity building is an important enabler for States to mobilise resources for domestic development and international tax cooperation. Singapore has been actively providing assistance in this respect and we will continue to do so. Just 2 comments on this article. On paragraph 1 we share the views echoed by Norway, China, Germany, Saudi Arabia and others that this may be more appropriately placed in another article on obligations or perhaps in the preamble on paragraph 3. We note that capacity building is fundamentally a demand based technical assistance. So we may not want to be so overly prescriptive in the areas of assistance and vision as Article 3B and 3C does to allow flexibility to cater for future developments such as the emergence of new technologies. Thank you. Chair [31:56]: Thank you. Singapore, United Kingdom, please. United Kingdom of Great Britain and Northern Ireland [32:00]: Thank you very much. I'll keep this intervention brief as I think many partners have already said this. I mean, look, the UK supported the inclusion of a specific capacity building article and would again affirm our support today. It's been our experience that developing countries have been clear that they once scaled up demand driven support to help strengthen tax and public finance systems. And to that end, the UK has expanded its peer to peer offer and continue to support multilaterals with their work in this area. And then in particular on. On. On the text, you know, I guess as is represented at the moment, we consider that it's important to just as a minimum for the Framework Convention, have a commitment from all parties to offer technical assistance and capacity building to other jurisdictions based on their resources and expertise. And so we would urge that this language continue to remain a part of the Framework Convention. Thank you very much. Chair [32:52]: Thank you. United Kingdom, Republic of Korea, please. Republic of Korea [33:00]: Thank you, Mr. Kohli, for giving me the floor. Korea fully recognized the importance of capacity building and technical assistance as an essential component of effective and inclusive international tax cooperation. In particular, Korea acknowledges the need to support developing countries in strengthening their domestic tax systems and administrative capabilities. In detail, with regard to paragraph one, Korea aligns with the views expressed by Germany, India and Norway and other delegations. We note that the current text appears to be broad in scope and general in nature. In our view, such language resembles a general implementation clause that would normally apply to the Framework Convention as a whole, rather than being placed specifically within one article. Secondly, Korea is of a view that the content of modalities of the support described in this article should be designed with sufficient flexibility, taking into account the different circumstances and needs of each country. Korea notes that the current draft appears to be too detailed and prescriptive in this regard. In our view, overly detailed and provisions may constrain the ability to tailor support to the actual need of beneficiary countries and could risk undermining the overall effectiveness of capacity building efforts. Let me stop here. Thank you. Chair [34:50]: Thank you. Korea. Do we have any more Member states? Okay. Jamaica. Jamaica, please. Jamaica [34:59]: Thank you. Kholid Khalid. Similar to many who have spoken before, we support the importance of of having Article 12 in the framework Convention, particularly, you know, coming from developing country and a small island developing country. However, like others have said before us, paragraph one we think is misplaced and ought to be elsewhere in the Convention as an enabling section A general statement of commitment. And we believe that the first paragraph under this heading should be a paragraph that seeks to mention how the capacity building needs of countries will be ascertained. And so we think that is where the article ought to start ascertaining the capacity building needs of countries. Paragraph two, we think, is a bit limited in that from our interpretation, it seeks to mention building the capacity in respect of participating in the norm setting process debates, et cetera. We believe that the needs of if the capacity needs are wider than that, we believe that any capacity building and technical assistance that is offered should ultimately ought to be building capacity so that the revenue authorities can be optimized in terms of how they carry out their duties, because that is where the need is in terms of data mining and auditing skills, et cetera. So we believe that paragraph two should be rescoped. In terms of paragraph three, we are also of the view that it should be rescoped because it seems to focus on capacity building in only certain areas and would, in our view, run counter to what the article is seeking to achieve. Thank you, Chair. Thank you. Chair [37:39]: Jamaica. Lisotso, please. Lesotho [37:42]: Thank you, Chair. We are aligned to the submission made by on behalf of the African group by Zambia. But I just wanted to address one aspect and that is paragraph one to us, paragraph one still looks properly placed elsewhere in the Convention you have made undertakings to do certain things. For example, let's say we are going to share information in relation to real estate and we find that for us to be able to undertake that, we'll need to do legislative changes, including administrative aspects. So it could be that that registry sits elsewhere. But for purposes of effectively delivering on that, we might want to change the institution where it sits. And then paragraph one would therefore allow the particular country to actually make sure that whatever commitments that it has made with regards to certain article of the Convention be able to be undertaken. But I think that is the essence of what paragraph one is all about. In other words, capacity building is not about the soft skills that we are looking at. It's also about making sure that there are procedural arrangements that are proper or properly established. And as a result, if we have that, then we'll be able to meet our obligations under the Convention. So that would be our thinking on that particular one. Thank you, Chair. Chair [39:33]: Okay, thank you. Speaker 39 [39:35]: LISU to Indonesia, please. Indonesia [39:38]: Thank you, colleague. We support the inclusion of capacity building and technical assistance article in the Framework Convention which call for provisions on institutional mechanism to support Member States in building capacity in relevant international tax practices and Related issues. Such mechanism are essential to enable effective participation in international tax cooperation and the implementation of the Framework Convention. We encourage capacity building and technical assistance to be sustainable, flexible and responsive to country specific needs. Lesotho [40:11]: And in this regard we emphasize that such assistance should be long term in nature in order to maximize its effectiveness and deliver lasting impacts for countries in need. We also feel that capacity building and technical assistance should cover a broad scope which I believe that African group also mentioned this so we can support the suggestion made by African group and ready to working constructively on this article. Thank you. Mr. Khalid [40:40]: Thank you. Brazil, please. Brazil [40:43]: Thank you, Mr. Khalid. Brazil recognizes the importance of capacity building and technical assistance as a structural element of the Convention and as essential to as efficient its effectiveness, legitimacy and long term sustainability. We share the view presented by other delegations that paragraph one and two would be more appropriate placed in other part of the Convention. And we also noted constructive elements in the proposals put forward by the African group and China which would we would be willing to take into consideration as appropriate. Thank you, Mr. Collet. Chair [41:31]: Thank you, Brazil. Okay, I think Jamaica again, Jamaica [41:37]: thank you for giving me the floor. Again. Co lead. Just to mention that we also support the interventions on finding a way to measure the impact of capacity building. We believe that that is critical. It has eluded I think tax authorities for some time now how you measure the productivity that comes from capacity building. So just to lend our support to that intervention. Chair [42:05]: Thank you, Jamaica, Japan, please. Japan [42:10]: Thank you Colleen for giving me the floor. We agree with many countries that capacity building is fundamental and important. We just wanted to make one point that we understand that various organizations are currently implementing diverse capacity building work and it is necessary to avoid overlaps and implement them efficiently and effectively. To that end, we believe the coordination with other international and regional organizations providing capacity building support is crucial. Thank you. Chair [42:47]: Thank you, Japan. Ghana, please. Ghana [42:51]: Thank you, Chair. Ghana supports the African Group's proposed text, particularly the emphasis on strengthening developing countries ability to participate in international cooperation. Ghana welcomes provisions for sharing best practices and technical assistance such as addressing creative accounting practices that erode the tax base. Ghana suggests ensuring these measures are complemented by robust framework for data analytics and UI as mentioned by the African Group. This will enhance our capacity to implement the Convention effectively. Chairman, I respectfully submit. Chair [43:38]: Thank you, Ghana. Egypt, please. Egypt [43:47]: Thank you, Mr. Chair. First of all, let me say that we think it's necessary to have an article on capacity building and technical assistance. And this is to help parties in developing States in particular in their capacity building as regards international practices and to make sure that they have the capacity that is needed to cooperate properly and to implement the Convention. Now on pair one, we think that it's not adding anything fundamental. Each State will take the necessary measures, legislative or administrative, to ensure the implementation of the Framework Convention as is provided by the Framework Convention. Therefore, this paragraph is superfluous. Furthermore, we would like to thank you very much for the paragraph 4 and 5, article 11, which we welcome. Thank you. Chair [45:03]: Okay, thank you, Egypt. I don't see any more. Member States so move to stakeholders and CY please. Children Youth International · Children Youth International + Major Group for Children and Youth [45:30]: Thank you, Chair. Distinguish all GETs and colleagues. I have the honor to speak on behalf of Children Youth International and major group for Children Youth. We strongly welcome Article 12 as a Central pillar of an effective, inclusive and implementable Framework Convention. The capacity of States to fulfill their obligations under this Convention depends not only on political commitment, but also on sustained capacity building efforts, technical assistance and access to the institutional, financial and technological resources necessary for meaningful and equitable participation in international tax cooperation. From the perspective of children and youth, capacity building is closely linked to equity intergenerational justice. In the absence of adequate and sustained support, many countries, particularly those in fragile and capacity constraint context, face challenges in fully engaging in norm setting, agenda setting and decision making processes, as well as in implementing measures to address illicit financial flows, tax avoidance and tax evasion. These capacity gaps risk perpetuating unequal outcomes and constraining government's ability to mobilize domestic resources for education, health, social protection and climate action. We therefore welcome the emphasis in Article 12 on procedures that recognize the diverse needs, priorities and capacities of all countries. Meaningful participation should extend beyond formal inclusion to ensure that States are able to contribute substantively, whether directly or through country groupings in accordance with their preferences. In this regard, technical assistance should be demand driven, predictable and well coordinated with relevant international and regional organizations. Finally, we emphasize that capacity building efforts should be transparent and inclusive and complemented by meaningful engagement with civil society, including youth led organizations, which can contribute to knowledge sharing, monitoring and accountability. In closing, we encourage Member States to approach Article 12 not as a peripheral provision, but as a foundational enabler of the Convention's objectives, ensuring that international tax cooperation is truly universal, effective and capable of delivering sustainable development outcomes for present and future generations. We thank you. Chair [47:44]: Thank you. We now have Stakeholder one, that's south and Eastern African Trade Information and Negotiation Institute. Southern and Eastern Africa Trade Information and Negotiation Institute [47:56]: Thank you, Chair. Southern and Eastern Africa Trade Information and Negotiation Institute · African Civil Society Working Group on the UN Tax Convention · Aloisius Chitengo [48:02]: I am Aloisius Chitengo and I work for Southern and Eastern Africa Trade Information and Negotiation Institute, speaking on behalf of the African Civil Society Working Group on the UN Tax Convention. On the onset it should be clear that no amount of capacity building can do away with the structural and system systemic issues that exist in the current tax system. Capacity building is not a panacea to the challenges faced by developing countries in the international tax cooperation. The reality is that international tax standards must be revised. This means that holistically the Framework Convention should should be drafted for international. This means that holistically the Framework Convention should ensure that the drafting of the international standards, legal and regulatory frameworks be inclusive and participatory. Considering the different capacities, particularly of the global southern countries. That said, to fully address the tax related illicit financial flows, tax abuse, tax avoidance, it is necessary for all countries to have a sound technological base. For this reason we propose including an obligation to transfer the requisite technology required for the implementation of the commitments under the Framework Convention. The lack and inadequacy of technology has previously exacerbated inequality and increased technological divides and technological capacity difference between the developed and developing countries. Additionally, the notion of technology transfer is common in public international law and therefore this would not be the first time that such an obligation would appear in the UN instrument. I thank you Chair. Chair [50:28]: Thank you. We now stick with the two the cncd. CNCD 11 · CNCD-11 + Global Alliance for Tax Justice [50:37]: Thank you very much. Co lead Distinguished delegates, I'm speaking on behalf of CNCD 11 and the Global alliance for Tax justice. And if you'll allow me, I will be short to the point and if I may say so, high level, as I understand this is appreciated by some in this room. So on Article 12 regarding capacity building, we have one major concern. You cannot build capacity into a broken tax system. Transfer pricing and the broader international system simply do not work. Countries in both the global north and south are losing several hundreds of billions of dollars due to international tax abuse every year. All the capacity building in the world will not change that. Even parties who usually offer capacity building are losing themselves from this broken system. Global north countries have by far the most powerful tax administrations in the world. Yet still they are unable to tax profits from multinational corporations and the wealthiest individuals in a fair and effective manner. And for the vast majority of them, we wonder why they have not been more ambitious here, as they would have a lot to gain from a new more effective international tax system. So the core problem lies not in capacity building, but elsewhere. And this brings us to the main point civil society organizations have been making this whole week. This Framework Convention cannot be hollow. It must include strong commitments, mechanisms and mandates that allow the Conference of the Parties to flesh out and operationalize the articles of the Convention and thus establish a new Fair, transparent and effective international tax system for sustainable development. Thank you very much. Chair [52:41]: Thank you. We now have stakeholder three, apmdd. APMDD · Charles Santiago [52:50]: Thank you Chair, co lead and friends, I bring you greetings of peace and solidarity from Southeast Asia. I represent the APMDD and just for your information, my name is Charles Santiago. I'm a three term member of Parliament from Malaysia as well as the co chair of the ASEAN Parliamentarians for Human Rights. Distinguished delegates, colleagues and friends. Before we turn to legal tax, look around this room. What we see is the distribution of power. Some delegations arrive with teams of lawyers, tax experts and seasoned negotiators. Others are absent not because they lack knowledge or commitment, but because they lack the resources simply to be here. Those empty chairs matter. They are not accidental. They reflect a system that privileges power and excludes those without it. And we know the consequences of this. If you are not at the table, you are on the menu. This is why Article 12 is not a technical provision. It is a political one at its core. Article 12 asks what? Who gets to participate meaningfully in shaping global tax rules? For decades, the global tax system has worked well for wealthy states and multinational corporations. Capital moves freely, profits are protected. While many countries face eroding tax bases, underfunded public services and widening inequality. This is not accidental. These rules were written in spaces where many countries were never fully present. Today, global tax norms remain dominated by the OECD and powerful economies. Much of the Global south is expected to implement frameworks it had little role in designing. Agenda setting is concentrated and policy space is constrained. Therefore, Article 12 exists because this imbalance cannot be solved by compliance alone. But capacity building must be understood correctly. It is not charity, it is not top down assistance and it is definitely not a substitute for inclusion. Capacity building must enable countries to participate fully, meaningfully, independently by resourcing attendance, expertise, analysis and confident negotiations. This is a matter of reparative justice as the Global south is still treated as a recipient of expertise, not a co author of Solutions. If Article 12 is serious, it must break from this model through a UN administered, independently govern and demand driven funding mechanism that builds long term capacity. Capacity building cannot be an add on. It must be the foundation of this convention, level the playing field and fairness becomes possible. Fail to do so and equality will simply be rewritten into new rules. Thanks for your attention. Chair [56:21]: Thank you. We now have Stakeholder five, the UN independent expert on the promotion of a democratic and equitable international order. UN · Independent Expert [56:32]: Thank you, Chair. We are following the works of the conference with my colleague, the independent expert on sovereign Debt, Professor Waris. And we both consider it of historic importance. It is indeed a pivotal moment. For decades, international tax rules have been written in Paris by a club of rich countries. This framework, the existing international tax framework is not broken. It is working exactly as designed to prioritize the profits of multinationals capital exporting countries over fairness and development needs. The evidence is stark. Seven years after the OECD BEPS reforms, US multinationals shift twice as much profit out of developing countries as before the reforms. Only five developing nations can access country by country reports $1 trillion annually flows out of the Global south while hospitals go unbilled and teachers go unpaid. This is not just an economic failure. It is a serious human rights violation. The new OECD side by side package won't remedy the situation. On the contrary, if implemented, it is going to have serious impact both on the north south divide and also the democratic character of the international order. A democratic and equitable international order cannot be built on arrangements negotiated in restricted settings and subsequently presented as global solutions. The United Nations Framework Convention is on the contrary, transparent and grounded in the principle of one country, one vote, reflecting the equal dignity and participation of all states. It represents a critical opportunity to trust a different course towards an inclusive and effective international tax cooperation rooted in genuine multilateralism and sovereign equality. This is truly a historic moment. Let's not waste it. Thanks, Chair. Chair [59:00]: Thank you. We'll have the Republic of Tanzania, please. Thank you, Khalid. We align with the statement made by Zambia on behalf of the African Group and others in support of this proposal. A convention that creates obligations without implementable support risk establishing an equal participation in the outcomes. United Republic of Tanzania [59:25]: Capacity building must therefore be actionable, measurable and responsive to the needs of developing countries and countries in spatial situations. We emphasize technology transfer and operational support, including digital tax systems, data analytics and secure infrastructure supported by financing and assistance to deploy solutions. We also support skills and expertise transfer through secondments, exchange programs and structured training to build sustainable institutional capacity. In conclusion, Kulit capacity building is vital for international tax cooperation on an equal footing. Without it, fair and equitable domestic resource mobilization will remain out of reach and the development gap will persist. We therefore support the African Group proposal with clear commitments and practical modalities for technical assistance. Thank you, Chair. Chair [1:00:25]: Thank you, Tanzania. We now have stakeholder for the UN independent expert on foreign debt and international financial obligations. UN · Independent Expert [1:00:41]: I had a similar challenge with trying to understand what the purpose of the first paragraph was. But I will give you solutions because of the conversations that we were all party to in Nairobi. So the challenge in Capacity building, I think, is being seen from the perspective of a specific set of countries that need training and a specific set that are available to give support. And there are two elements to this treaty when it comes to capacity building and assistance. The first is capacity building for all member States across the world to implement this treaty at the end of it, and this was a conversation that we did have in Nairobi. And then the second part of capacity building and technical assistance is now for those that have less capacity or technical support that need to even get into the space. And I'm of course cognizant of the fact of the empty spaces which we've been referring to. So the challenge is therefore threefold, and the solution will therefore also be threefold. You will have north south issues, south south issues and south north issues. But at a certain point in time, the learnings and the capacity building under this treaty and its obligations, as you then come to a conclusion to it, are going to be things you have to mainstream across all governments and all ministries across the world working on these particular tax issues. So I see issues of learning unlearning and relearning in that process. So what does capacity building then and technical assistance involve in these particular paragraphs that we are talking about? One is this shared building, and the second is the building on tax technical issues. So I would like to posit an amendment to paragraph one and say that perhaps it will add clarity if we say that each State Party shall take the necessary measures, including legislative and administration, to ensure that all capacity building and technical assistance is in line with these obligations. And I think that if you put that in, perhaps it will add some clarity into the space without the need to completely remove it, as some Member States are suggesting. I thank you very much for the time. Thank you. Chair [1:02:58]: Can we have myad, please? Thank you. McGillis advisory delegation · McGillis advisory delegation [1:03:01]: Chair, distinguished Delegates and colleagues, I am speaking on behalf of the McGillis advisory delegation. McGillis advisory delegation [1:03:08]: With reference to paragraph one of the article 12, we align with various Member States that it lacks specificity. We know that the Convention does not specify what constitutes the necessary measures required to the implementation, nor how capacity building efforts should be designed over time. We would like to add a youth perspective to capacity building as we believe that it should not only apply to support the ministries or tax authorities of State parties, but also to investing in youth, young professionals, students and early career experts. As stated on the terms of reference, this Convention aims to, quote, respond to existing and future tax and tax related challenges. Achieving this objective requires ensuring that future generations are equipped with the knowledge, skills and opportunities to meaningfully contribute to its implementation. Youth organizations are already engaged in these processes and we stand ready to support state parties in building a convention that is effective, inclusive and sustainable over the long term. Thank you. Chair [1:04:08]: Thank you. Myad. Speaker 71 [1:04:15]: It. Chair [1:04:44]: Okay, India, please. India [1:04:48]: Thank you. Chair, just a small clarification on this article. Would we be having a protocol on this particular article also? I mean, or is it like for every article we would be having a protocol so that we we understand how deep or how vast we have to go in into the contents of the article. Chair [1:05:44]: All right, thank you India. And at least I just consulting to make sure. But we don't expect to have a protocol on capacity building. It'll be more of the article basically will speak for itself and if there's anything is the state parties or the conference of parties which would sort of coordinate any such activities, but there won't be any protocol. Okay, I didn't see any more requests for the floor. And so. It seems everybody is in a hurry to enjoy the rest of the day. So we'll do our best not to keep you any longer. But before then, I want to say thank you to everybody for the lively discussions we've had this week. I believe that when we go into the intersectional sessions, we'll have a lot more lively ones. There was a question asked that we seem to have spent so much time on the commitments and when are we moving to other articles? We are moving to other articles, but the time we spend on their commitments was because the. The equipment basically form the foundation for quite a number of things that we are going to do. And for those who have an idea of how buildings are put up, depending on the work and the number of stories you have in the building, it determines the foundation. So if it's just a simple one story building, what goes into the foundation is not the same as what goes into a a hundred floor building. The foundation is different. Sometimes the foundation is left to sit for several months, sometimes even a year for it to settle before the building actually goes up. Believe that this process, the convention we are looking at, is not something which is not just for today, it's not just for tomorrow. We've talked about it going into the future. So it is important that we take our time over the commitments and ensure that, as has been mentioned several times, we all understand what we want to do. And in that as we build on the other articles, we're able to do that and we're also able to provide a foundation for the conference of parties to be able to actually carry out their role as we go forward. So happy that we've all been involved in this process process of building this foundation. Okay, Germany doesn't want me to finish but Michael, because he's not close enough to nudge him in the. In the way he's doing this. Germany, please. Germany [1:08:59]: Thank you. Mr. Kohli, with your indulgence, we are not going to discuss Article 21. I mean asking because after all, we have an draft of Article 21 in front of us. Chair [1:09:18]: No, please. I think everybody wants to have an early Friday. So we decided to give everybody an early Friday. No, we've not discussed in the West. So Anyway, so Article 21 has always been there. We've never really discussed in the west stream. And I don't want to burst anybody's bubble now by bringing in Article 21 after we said that we follow. So. So I'm sure we'll look at it later on during the stream Germany [1:09:57]: protocol until. So it's just leverage from there we will discuss it. Chair [1:10:26]: All right. So Germany, thank you for that reminder but as I mentioned would look at it later. Okay. So yes, so it's good that we finish up would have quite a number of articles we'll look at during the intercession or session in preparation for the August plenary. So I believe that just as we've participated all along, we will continue to contribute as we look at these new articles. There are some of them that we've started looking at already. We've asked that members should think through them. We brought an outline for conference of Parties. We brought an outline for Secretariat. We looked at data collection. We have some indicative definitions and I was wondering whether we need a definition for what we've all been saying that we need to have a high level. Because it seems a high level seems to differ based on this. So I don't know whether we might need a definition on what high level is anyway that's by the way, I don't think anybody wants to do that. But then. So let's continue to support as we do the work we will. We are planning to have a focus group on some of the articles to see which the ones which are a bit naughty to see how we can advance them and make sure that at the end of the day we're all on the same page and we work assiduously and fast enough to make sure that we're able to complete our work on shadow. So I want to say thank you to everybody for your cooperation during this past week. Co-Lead · Daniel [1:12:17]: You've been great and we will continue to have discussions I'll hand over to the Chair. Chair [1:12:28]: Thanks to Daniel and thanks for everyone for your constructive interventions through this week. And regarding focus group, I would like to make an announcement. So on the work stream one, we will be establishing a focused group tasked with developing a balanced and constructive proposal for Article 5. One of the key areas with divergence still remains. Each regional group is invited to nominate three member states to participate in this effort. The focus group will begin its work immediately and is expected to conclude by mid of April at the latest. Throughout its mandate, the group will report directly to the CO lead and to the Chair, with full support provided by the Secretariat. The group will also elect a leader from among its members. This rule may rotate at the start of each meeting to ensure inclusivity and shared ownership of the process. I trust that this structure will allow us to advance efficiently and collaboratively toward a text that reflects balance, fairness and collective priorities for all regions. I would request the front regional group to send their nomination maximum by Tuesday cut of business day to the Secretariat on the Committee email. So I hope this was clear about the focus group that will be working on Article 5. Upon finalizing the work, the proposal will go to the work stream to be discussed. Then after that of course, the normal process after work stream it will come to the Committee as a part of the tickets that will be discussed in August. So again I will remind you with a deadline that please, each regional group need to send three nominees among their members. So this should be sent by email to the Secretariat no later than cut off Business day Tuesday. Thank you all. And final reminder. Next Monday we will convene in conference room one in the like. I don't know. It's ground floor or first floor. I don't know, basement sub one. Okay, so the rooms that we use to convene in. Thank you all and wish you a good evening and happy weekend. Take care. Thank you.