{"disclaimer":"Transcripts available through this tool are created by using automatic speech recognition and are not official records nor official documents of the United Nations. Official records and official documents are available on the Official Document System of the United Nations.","url":"https://transcripts.un.org/en/asset/k1e/k1ebgs6m85","llms":{"note":"Plain-text sibling of this page, compact for LLM context. For the full API guide (search, listing, URL grammar) see /llms.txt.","textUrl":"/en/asset/k1e/k1ebgs6m85.txt","guide":"/llms.txt"},"video":{"id":"k1e/k1ebgs6m85","kaltura_id":"1_ebgs6m85","title":"(12th meeting) - Fifth Session of the Intergovernmental Negotiating Committee on the UN Framework Convention on International Tax Cooperation (INC Tax) - 3 to 13 August 2026","clean_title":"(12th meeting) - Fifth Session of the Intergovernmental Negotiating Committee on the UN Framework Convention on International Tax Cooperation (INC Tax) - 3 to 13 August 2026","url":"https://webtv.un.org/en/asset/k1e/k1ebgs6m85","date":"2026-08-10T00:00:00.000Z","scheduled_time":"2026-08-10T19:00:00.000Z","status":"finished","duration":"02:37:46","category":"General Assembly","body":"General Assembly","event_code":null,"event_type":null,"session_number":null,"pv_symbol":null,"pv_part":null,"slug":"asset/k1e/k1ebgs6m85"},"metadata":{"summary":"The Fifth Session will take place at the United Nations Headquarters in New York from 3 to 13 August 2026.","description":"The United Nations General Assembly has established an Intergovernmental Negotiating Committee (INC) to draft a United Nations Framework Convention on International Tax Cooperation and two early protocols.\n\nThe United Nations Framework Convention on International Tax Cooperation is a proposed international legal instrument aimed at improving global tax cooperation. This Member State-led process will run from 2025 to 2027, with the aim of developing a framework convention that leads to fully inclusive and more effective international tax cooperation.","categories":["Meetings & Events","General Assembly","Subsidiary organs of the General Assembly","Intergovernmental Negotiating Committee on UN Framework Convention on International Tax Cooperation"],"geographic_subject":[],"subject_topical":["TAXATION","COOPERATION"],"corporate_name":[],"speaker_affiliation":[],"related_documents":[{"title":"Programme","url":"https://financing.desa.un.org/sites/default/files/2026-07/CRP.31%20INC%20Tax_Fifth%20session_programme.pdf"},{"title":"Website","url":"https://financing.desa.un.org/inc/fifthsession"}]},"transcript":{"transcript_id":"scheduled-0bfa05ab-c3df-451f-af94-5c9a7b8722be","language":"en","timestamps_flagged":true,"timestamps_note":"UN Web TV re-edited this video after the transcript was created; timestamps may no longer match the current video.","original_duration_seconds":11913,"current_duration_seconds":9466,"data":[{"statement_number":1,"start":204.23,"pageUrl":"/en/asset/k1e/k1ebgs6m85?t=205","paragraphs":[{"sentences":[{"text":"Thank you.","start":204.23,"end":207.31,"topics":[],"words":[{"text":"Thank","start":204.23,"end":204.39},{"text":"you.","start":207.23,"end":207.31}]}]}],"speaker":{"name":null,"affiliation":null,"affiliation_full":null,"group":null,"function":null}},{"statement_number":2,"start":2198.39,"pageUrl":"/en/asset/k1e/k1ebgs6m85?t=2199","paragraphs":[{"sentences":[{"text":"Good afternoon, everyone.","start":2198.39,"end":2199.43,"topics":[],"words":[{"text":"Good","start":2198.39,"end":2198.59},{"text":"afternoon,","start":2198.59,"end":2198.95},{"text":"everyone.","start":2198.95,"end":2199.43}]},{"text":"Okay, we're going to continue the discussions for workstream two.","start":2200.83,"end":2203.75,"topics":[],"words":[{"text":"Okay,","start":2200.83,"end":2200.99},{"text":"we're","start":2200.99,"end":2201.19},{"text":"going","start":2201.19,"end":2201.35},{"text":"to","start":2201.35,"end":2201.43},{"text":"continue","start":2201.43,"end":2201.75},{"text":"the","start":2201.75,"end":2201.83},{"text":"discussions","start":2201.83,"end":2202.39},{"text":"for","start":2202.39,"end":2202.51},{"text":"workstream","start":2202.51,"end":2203.11},{"text":"two.","start":2203.43,"end":2203.75}]},{"text":"Lisa, please go ahead.","start":2206.07,"end":2207.23,"topics":[],"words":[{"text":"Lisa,","start":2206.07,"end":2206.35},{"text":"please","start":2206.35,"end":2206.79},{"text":"go","start":2206.95,"end":2207.07},{"text":"ahead.","start":2207.07,"end":2207.23}]}]}],"speaker":{"name":"Kholoud","affiliation":null,"affiliation_full":null,"group":null,"function":"Co-Lead"}},{"statement_number":3,"start":2207.99,"pageUrl":"/en/asset/k1e/k1ebgs6m85?t=2208","paragraphs":[{"sentences":[{"text":"Thank you, Chair. Thank you, Rami. Just some reminders.","start":2207.99,"end":2213.03,"topics":[],"words":[{"text":"Thank","start":2207.99,"end":2208.31},{"text":"you,","start":2208.31,"end":2208.79},{"text":"Chair.","start":2208.79,"end":2209.27},{"text":"Thank","start":2209.27,"end":2209.47},{"text":"you,","start":2209.47,"end":2209.55},{"text":"Rami.","start":2209.55,"end":2210.07},{"text":"Just","start":2210.91,"end":2211.07},{"text":"some","start":2211.07,"end":2211.51},{"text":"reminders.","start":2211.91,"end":2213.03}]},{"text":"We have been asked by translators to speak slow, And also, if you have written interventions, please hand them in to the 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when Belgium asks us about how we should calculate and et cetera, we should be aware of 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And if we can get the slide up again, Katie, that would be 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the list, actually it's changed, but I will take countries who have not spoken before first, and I have Liechtenstein on the list, first 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go ahead, Liechtenstein.","start":2412.63,"end":2414.15,"topics":[],"words":[{"text":"Please","start":2412.63,"end":2412.87},{"text":"go","start":2412.87,"end":2413.07},{"text":"ahead,","start":2413.07,"end":2413.43},{"text":"Liechtenstein.","start":2413.51,"end":2414.15}]}]}],"speaker":{"name":"Kholoud","affiliation":null,"affiliation_full":null,"group":null,"function":"Co-Lead"}},{"statement_number":6,"start":2416.15,"pageUrl":"/en/asset/k1e/k1ebgs6m85?t=2417","paragraphs":[{"sentences":[{"text":"Thank you very much, co-lead.","start":2416.15,"end":2417.83,"topics":[],"words":[{"text":"Thank","start":2416.15,"end":2416.39},{"text":"you","start":2416.39,"end":2416.47},{"text":"very","start":2416.47,"end":2416.71},{"text":"much,","start":2416.71,"end":2417.03},{"text":"co-lead.","start":2417.19,"end":2417.83}]},{"text":"Liechtenstein would like to thank the Secretariat for the work done regarding Protocol 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as other countries like France and Portugal have already mentioned, for a credible process we need less surprises along the 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Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}],"words":[{"text":"That","start":2450.19,"end":2450.47},{"text":"said,","start":2450.47,"end":2450.67},{"text":"we","start":2450.67,"end":2450.75},{"text":"wanted","start":2450.75,"end":2451.11},{"text":"to","start":2451.11,"end":2451.23},{"text":"align","start":2451.23,"end":2451.67},{"text":"ourselves","start":2451.67,"end":2452.11},{"text":"with","start":2452.11,"end":2452.27},{"text":"statements","start":2452.27,"end":2452.99},{"text":"from","start":2452.99,"end":2453.87},{"text":"EU","start":2453.87,"end":2454.11},{"text":"countries,","start":2454.11,"end":2454.75},{"text":"but","start":2454.75,"end":2454.91},{"text":"also","start":2454.91,"end":2455.15},{"text":"from","start":2455.15,"end":2455.55},{"text":"UK,","start":2455.55,"end":2455.95},{"text":"UAE,","start":2455.95,"end":2456.51},{"text":"Switzerland,","start":2456.67,"end":2457.31},{"text":"India,","start":2457.31,"end":2457.71},{"text":"China,","start":2457.71,"end":2458.19},{"text":"Saudi","start":2458.27,"end":2458.59},{"text":"Arabia,","start":2458.59,"end":2459.15},{"text":"and","start":2459.39,"end":2459.63},{"text":"others,","start":2459.63,"end":2460.03},{"text":"that","start":2461.31,"end":2461.51},{"text":"the","start":2461.51,"end":2461.59},{"text":"relationship","start":2461.59,"end":2462.19},{"text":"between","start":2462.19,"end":2462.55},{"text":"Protocol","start":2462.55,"end":2462.99},{"text":"1","start":2462.99,"end":2463.47},{"text":"to","start":2463.71,"end":2463.95},{"text":"existing","start":2463.95,"end":2464.43},{"text":"bilateral","start":2464.43,"end":2464.87},{"text":"treaties","start":2464.87,"end":2465.23},{"text":"should","start":2465.23,"end":2465.39},{"text":"be","start":2465.39,"end":2465.47},{"text":"clarified.","start":2465.47,"end":2466.19}]},{"text":"When there are existing treaties, it must be clear which provisions are applicable.","start":2466.79,"end":2471.87,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. 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Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}],"words":[{"text":"We","start":2472.83,"end":2473.03},{"text":"have","start":2473.03,"end":2473.15},{"text":"concerns","start":2473.15,"end":2473.75},{"text":"if","start":2473.75,"end":2473.91},{"text":"Protocol","start":2473.91,"end":2474.35},{"text":"1","start":2474.43,"end":2474.67},{"text":"would","start":2474.67,"end":2474.83},{"text":"override","start":2474.83,"end":2475.43},{"text":"existing","start":2475.43,"end":2475.95},{"text":"treaties.","start":2475.95,"end":2476.59}]},{"text":"which are a well-balanced result of bilateral negotiations, taking into account also other income allocation rules, not just the ones dealing with taxation of services.","start":2477.91,"end":2488.35,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}],"words":[{"text":"which","start":2477.91,"end":2478.27},{"text":"are","start":2478.27,"end":2478.47},{"text":"a","start":2478.47,"end":2478.51},{"text":"well-balanced","start":2478.51,"end":2479.23},{"text":"result","start":2479.23,"end":2479.63},{"text":"of","start":2479.67,"end":2479.79},{"text":"bilateral","start":2479.79,"end":2480.31},{"text":"negotiations,","start":2480.31,"end":2481.23},{"text":"taking","start":2481.71,"end":2481.99},{"text":"into","start":2481.99,"end":2482.23},{"text":"account","start":2482.23,"end":2482.91},{"text":"also","start":2482.99,"end":2483.31},{"text":"other","start":2483.31,"end":2483.63},{"text":"income","start":2483.63,"end":2484.03},{"text":"allocation","start":2484.03,"end":2484.59},{"text":"rules,","start":2484.59,"end":2485.07},{"text":"not","start":2485.39,"end":2485.59},{"text":"just","start":2485.59,"end":2485.83},{"text":"the","start":2485.83,"end":2485.91},{"text":"ones","start":2485.91,"end":2486.35},{"text":"dealing","start":2486.35,"end":2486.83},{"text":"with","start":2486.83,"end":2486.99},{"text":"taxation","start":2486.99,"end":2487.59},{"text":"of","start":2487.59,"end":2487.67},{"text":"services.","start":2487.67,"end":2488.35}]},{"text":"So we would like to support more optionality, not just regarding the protocol itself, but also with regard to parts of the protocol which should be Optionality should be applicable.","start":2489.07,"end":2504.31,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"So","start":2489.07,"end":2489.63},{"text":"we","start":2490.27,"end":2490.47},{"text":"would","start":2490.47,"end":2490.59},{"text":"like","start":2490.59,"end":2490.83},{"text":"to","start":2490.83,"end":2490.91},{"text":"support","start":2490.91,"end":2491.55},{"text":"more","start":2492.27,"end":2492.67},{"text":"optionality,","start":2492.67,"end":2493.55},{"text":"not","start":2493.63,"end":2493.99},{"text":"just","start":2493.99,"end":2494.19},{"text":"regarding","start":2494.19,"end":2494.59},{"text":"the","start":2494.59,"end":2494.67},{"text":"protocol","start":2494.67,"end":2495.15},{"text":"itself,","start":2495.15,"end":2495.71},{"text":"but","start":2495.71,"end":2495.87},{"text":"also","start":2495.87,"end":2496.43},{"text":"with","start":2497.07,"end":2497.27},{"text":"regard","start":2497.31,"end":2497.87},{"text":"to","start":2498.59,"end":2498.79},{"text":"parts","start":2498.79,"end":2499.11},{"text":"of","start":2499.11,"end":2499.23},{"text":"the","start":2499.23,"end":2499.31},{"text":"protocol","start":2499.31,"end":2500.11},{"text":"which","start":2500.39,"end":2500.63},{"text":"should","start":2500.63,"end":2500.91},{"text":"be","start":2500.99,"end":2501.47},{"text":"Optionality","start":2502.71,"end":2503.31},{"text":"should","start":2503.31,"end":2503.51},{"text":"be","start":2503.51,"end":2503.71},{"text":"applicable.","start":2503.71,"end":2504.31}]},{"text":"And also we support a system of opt-in, opt-out for specific bilateral treaties similar to what we already have under the BEPS MLI.","start":2504.47,"end":2513.03,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. 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Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}],"words":[{"text":"And","start":2504.47,"end":2504.71},{"text":"also","start":2504.71,"end":2505.27},{"text":"we","start":2505.27,"end":2505.51},{"text":"support","start":2505.51,"end":2505.87},{"text":"a","start":2505.87,"end":2505.91},{"text":"system","start":2505.91,"end":2506.39},{"text":"of","start":2506.39,"end":2506.63},{"text":"opt-in,","start":2506.63,"end":2507.07},{"text":"opt-out","start":2507.07,"end":2507.67},{"text":"for","start":2507.91,"end":2508.07},{"text":"specific","start":2508.07,"end":2508.55},{"text":"bilateral","start":2508.55,"end":2509.03},{"text":"treaties","start":2509.03,"end":2509.67},{"text":"similar","start":2509.99,"end":2510.47},{"text":"to","start":2510.47,"end":2510.55},{"text":"what","start":2510.55,"end":2510.79},{"text":"we","start":2510.79,"end":2510.87},{"text":"already","start":2510.87,"end":2511.23},{"text":"have","start":2511.23,"end":2511.47},{"text":"under","start":2511.47,"end":2511.71},{"text":"the","start":2511.71,"end":2511.79},{"text":"BEPS","start":2511.79,"end":2512.51},{"text":"MLI.","start":2512.55,"end":2513.03}]},{"text":"Furthermore, as has been pointed out by, for example, Italy and Germany, but also by others, we support taxation based on principles, value creation and nexus.","start":2514.55,"end":2524.87,"topics":[{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."},{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."}],"words":[{"text":"Furthermore,","start":2514.55,"end":2515.19},{"text":"as","start":2515.35,"end":2515.59},{"text":"has","start":2515.59,"end":2515.83},{"text":"been","start":2515.83,"end":2515.99},{"text":"pointed","start":2515.99,"end":2516.39},{"text":"out","start":2516.39,"end":2516.71},{"text":"by,","start":2517.63,"end":2517.91},{"text":"for","start":2517.91,"end":2518.07},{"text":"example,","start":2518.07,"end":2518.47},{"text":"Italy","start":2518.47,"end":2518.87},{"text":"and","start":2518.87,"end":2518.99},{"text":"Germany,","start":2518.99,"end":2519.51},{"text":"but","start":2519.51,"end":2519.71},{"text":"also","start":2519.71,"end":2519.99},{"text":"by","start":2519.99,"end":2520.23},{"text":"others,","start":2520.23,"end":2520.63},{"text":"we","start":2521.27,"end":2521.43},{"text":"support","start":2521.43,"end":2521.79},{"text":"taxation","start":2521.79,"end":2522.31},{"text":"based","start":2522.31,"end":2522.63},{"text":"on","start":2522.63,"end":2522.71},{"text":"principles,","start":2522.71,"end":2523.43},{"text":"value","start":2523.43,"end":2523.71},{"text":"creation","start":2523.71,"end":2524.19},{"text":"and","start":2524.19,"end":2524.35},{"text":"nexus.","start":2524.35,"end":2524.87}]},{"text":"When it comes to withholding tax on gross income, I believe we have to be careful not to run into over taxation.","start":2525.71,"end":2531.59,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs. Net Taxation","description":"Speakers debated whether cross-border services should be taxed through gross-basis withholding taxes or through approaches linked to net income or profit allocation. 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Critics warned that gross taxation can overtax low-margin activities, while others defended it as simpler to administer and harder to avoid."}],"words":[{"text":"not","start":2532.03,"end":2532.31},{"text":"to","start":2532.31,"end":2532.39},{"text":"ignore","start":2532.43,"end":2532.83},{"text":"the","start":2532.83,"end":2532.91},{"text":"costs","start":2532.91,"end":2533.47},{"text":"that","start":2533.47,"end":2533.63},{"text":"were","start":2533.63,"end":2533.83},{"text":"born","start":2533.83,"end":2534.35},{"text":"maybe","start":2534.59,"end":2534.87},{"text":"in","start":2534.87,"end":2534.95},{"text":"the","start":2534.95,"end":2535.03},{"text":"other","start":2535.03,"end":2535.19},{"text":"country","start":2535.19,"end":2535.63},{"text":"in","start":2536.43,"end":2536.59},{"text":"making","start":2536.59,"end":2536.91},{"text":"those","start":2536.91,"end":2537.03},{"text":"services","start":2537.03,"end":2537.59},{"text":"and","start":2537.59,"end":2537.75},{"text":"the","start":2537.75,"end":2537.83},{"text":"quality","start":2537.83,"end":2538.27},{"text":"of","start":2538.27,"end":2538.43},{"text":"those","start":2538.43,"end":2538.59},{"text":"services","start":2538.59,"end":2539.15},{"text":"possible","start":2539.15,"end":2539.59},{"text":"in","start":2539.59,"end":2539.71},{"text":"the","start":2539.71,"end":2539.79},{"text":"first","start":2539.79,"end":2540.03},{"text":"place.","start":2540.03,"end":2540.43}]},{"text":"Thank you very much.","start":2540.75,"end":2541.55,"topics":[],"words":[{"text":"Thank","start":2540.75,"end":2540.95},{"text":"you","start":2540.95,"end":2541.03},{"text":"very","start":2541.03,"end":2541.19},{"text":"much.","start":2541.19,"end":2541.55}]}]}],"speaker":{"name":null,"affiliation":"LIE","affiliation_full":"Liechtenstein","group":null,"function":null}},{"statement_number":7,"start":2543.15,"pageUrl":"/en/asset/k1e/k1ebgs6m85?t=2544","paragraphs":[{"sentences":[{"text":"Thank you very much, Liechtenstein.","start":2543.15,"end":2544.91,"topics":[],"words":[{"text":"Thank","start":2543.15,"end":2543.31},{"text":"you","start":2543.31,"end":2543.43},{"text":"very","start":2543.43,"end":2543.63},{"text":"much,","start":2543.63,"end":2544.11},{"text":"Liechtenstein.","start":2544.27,"end":2544.91}]},{"text":"Just to recap a little bit on the protocol, I mean, the protocol is of course optional for all of you to sign, you know, every country can opt in to sign the protocol.","start":2544.91,"end":2557.79,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"Just","start":2544.91,"end":2545.35},{"text":"to","start":2545.35,"end":2545.55},{"text":"recap","start":2545.63,"end":2546.19},{"text":"a","start":2546.19,"end":2546.23},{"text":"little","start":2546.23,"end":2546.51},{"text":"bit","start":2546.51,"end":2546.75},{"text":"on","start":2546.75,"end":2546.99},{"text":"the","start":2547.95,"end":2548.15},{"text":"protocol,","start":2549.23,"end":2550.03},{"text":"I","start":2550.03,"end":2550.11},{"text":"mean,","start":2550.11,"end":2550.27},{"text":"the","start":2550.27,"end":2550.43},{"text":"protocol","start":2550.43,"end":2551.15},{"text":"is","start":2551.15,"end":2551.35},{"text":"of","start":2551.35,"end":2551.47},{"text":"course","start":2551.47,"end":2551.79},{"text":"optional","start":2551.79,"end":2552.39},{"text":"for","start":2552.39,"end":2552.71},{"text":"all","start":2552.71,"end":2552.83},{"text":"of","start":2552.83,"end":2552.99},{"text":"you","start":2552.99,"end":2553.11},{"text":"to","start":2553.11,"end":2553.27},{"text":"sign,","start":2553.27,"end":2553.71},{"text":"you","start":2553.71,"end":2553.79},{"text":"know,","start":2553.79,"end":2553.95},{"text":"every","start":2553.95,"end":2554.27},{"text":"country","start":2554.27,"end":2554.75},{"text":"can","start":2554.75,"end":2555.07},{"text":"opt","start":2555.15,"end":2555.63},{"text":"in","start":2555.71,"end":2556.03},{"text":"to","start":2556.03,"end":2556.15},{"text":"sign","start":2556.15,"end":2556.75},{"text":"the","start":2556.83,"end":2556.99},{"text":"protocol.","start":2556.99,"end":2557.79}]},{"text":"Now, when we talk about optionality, not only to sign up to it, but within the agreement, we talk about optionalities as well.","start":2558.51,"end":2569.07,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"Now,","start":2558.51,"end":2558.71},{"text":"when","start":2558.71,"end":2558.91},{"text":"we","start":2558.91,"end":2559.07},{"text":"talk","start":2559.07,"end":2559.27},{"text":"about","start":2559.27,"end":2559.55},{"text":"optionality,","start":2559.55,"end":2560.67},{"text":"not","start":2561.31,"end":2561.47},{"text":"only","start":2561.47,"end":2561.79},{"text":"to","start":2562.11,"end":2562.23},{"text":"sign","start":2562.27,"end":2562.59},{"text":"up","start":2562.59,"end":2562.75},{"text":"to","start":2562.75,"end":2562.95},{"text":"it,","start":2562.95,"end":2563.15},{"text":"but","start":2563.23,"end":2563.47},{"text":"within","start":2563.95,"end":2564.83},{"text":"the","start":2565.55,"end":2565.67},{"text":"agreement,","start":2565.67,"end":2566.35},{"text":"we","start":2567.15,"end":2567.31},{"text":"talk","start":2567.31,"end":2567.55},{"text":"about","start":2567.55,"end":2567.87},{"text":"optionalities","start":2567.87,"end":2568.75},{"text":"as","start":2568.75,"end":2568.83},{"text":"well.","start":2568.83,"end":2569.07}]},{"text":"So let's understand well here so we are taking note correctly.","start":2569.07,"end":2574.03,"topics":[],"words":[{"text":"So","start":2569.07,"end":2569.47},{"text":"let's","start":2569.75,"end":2570.03},{"text":"understand","start":2570.51,"end":2571.11},{"text":"well","start":2571.11,"end":2571.55},{"text":"here","start":2571.55,"end":2571.87},{"text":"so","start":2571.87,"end":2572.03},{"text":"we","start":2572.03,"end":2572.35},{"text":"are","start":2572.35,"end":2572.51},{"text":"taking","start":2572.51,"end":2572.91},{"text":"note","start":2572.91,"end":2573.39},{"text":"correctly.","start":2573.39,"end":2574.03}]},{"text":"The optionality within the project, within the agreement, would be an optionality to agree to certain principles, but not all.","start":2574.35,"end":2583.23,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. 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you very much, Liechtenstein.","start":2635.71,"end":2637.15,"topics":[],"words":[{"text":"Thank","start":2635.71,"end":2635.87},{"text":"you","start":2635.87,"end":2635.95},{"text":"very","start":2635.95,"end":2636.19},{"text":"much,","start":2636.19,"end":2636.43},{"text":"Liechtenstein.","start":2636.43,"end":2637.15}]},{"text":"I have Algeria, please.","start":2637.47,"end":2638.83,"topics":[],"words":[{"text":"I","start":2637.47,"end":2637.71},{"text":"have","start":2637.71,"end":2637.87},{"text":"Algeria,","start":2637.91,"end":2638.47},{"text":"please.","start":2638.47,"end":2638.83}]}]}],"speaker":{"name":"Kholoud","affiliation":null,"affiliation_full":null,"group":null,"function":"Co-Lead"}},{"statement_number":8,"start":2642.99,"pageUrl":"/en/asset/k1e/k1ebgs6m85?t=2643","paragraphs":[{"sentences":[{"text":"Thank you, co-lead.","start":2642.99,"end":2644.27,"topics":[],"words":[{"text":"Thank","start":2642.99,"end":2643.39},{"text":"you,","start":2643.39,"end":2643.63},{"text":"co-lead.","start":2643.63,"end":2644.27}]},{"text":"Before I begin, we would like to support the intervention made by Nigeria on behalf of the African 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secretariat and delegations for the work done.","start":2653.63,"end":2660.83,"topics":[],"words":[{"text":"We","start":2653.63,"end":2653.71},{"text":"would","start":2653.71,"end":2653.83},{"text":"like","start":2653.83,"end":2654.03},{"text":"to","start":2654.03,"end":2654.15},{"text":"thank","start":2654.15,"end":2654.47},{"text":"the","start":2654.47,"end":2654.55},{"text":"co-leads,","start":2654.55,"end":2655.55},{"text":"the","start":2655.55,"end":2655.71},{"text":"secretariat","start":2655.71,"end":2656.83},{"text":"and","start":2657.75,"end":2657.91},{"text":"delegations","start":2657.91,"end":2658.75},{"text":"for","start":2658.75,"end":2659.15},{"text":"the","start":2659.15,"end":2659.43},{"text":"work","start":2659.63,"end":2660.19},{"text":"done.","start":2660.35,"end":2660.83}]},{"text":"and the progress in terms of rules included in the protocol and the draft proposed.","start":2661.55,"end":2668.59,"topics":[],"words":[{"text":"and","start":2661.55,"end":2661.79},{"text":"the","start":2661.79,"end":2661.95},{"text":"progress","start":2661.95,"end":2662.99},{"text":"in","start":2662.99,"end":2663.23},{"text":"terms","start":2663.23,"end":2664.03},{"text":"of","start":2664.03,"end":2664.75},{"text":"rules","start":2664.99,"end":2665.87},{"text":"included","start":2665.87,"end":2666.31},{"text":"in","start":2666.31,"end":2666.43},{"text":"the","start":2666.43,"end":2666.51},{"text":"protocol","start":2666.51,"end":2667.23},{"text":"and","start":2667.23,"end":2667.47},{"text":"the","start":2667.47,"end":2667.55},{"text":"draft","start":2667.55,"end":2667.91},{"text":"proposed.","start":2667.91,"end":2668.59}]},{"text":"Thank you for asking for our views and our understanding of the protocol to see where we want to go and the areas of convergence that we need to 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current draft doesn't contain a mechanism, I'm actually picking up on what has already been said by some colleagues, it doesn't have a clear mechanism to ensure that it can work with existing bilateral agreements to address existing imbalances of tax conventions which are were and by highly digital economies and the drafting of this protocol initially was driven by the existing limits of taxes of source countries because of tax conventions where in these conventions where the rules are not always the same so the situation has completely changed, looking at the protocol and how it would interact with the framework convention, this approach could lead to a progressive implementation of new provisions and therefore make it necessary to renegotiate each convention bilaterally.","start":2685.71,"end":2751.35,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing 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this is how it happens.","start":3151.67,"end":3152.79,"topics":[],"words":[{"text":"And","start":3151.67,"end":3151.83},{"text":"this","start":3151.83,"end":3151.99},{"text":"is","start":3151.99,"end":3152.07},{"text":"how","start":3152.07,"end":3152.15},{"text":"it","start":3152.15,"end":3152.27},{"text":"happens.","start":3152.27,"end":3152.79}]},{"text":"Article 5 read with Article 9 overrides para one and two of Article 5 and effectively takes away the residence credit taxing rights contained in Article 5.","start":3153.27,"end":3164.55,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. 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would also like to align myself with the position expressed by the African Group, by Nigeria, and which has been seconded by many other colleagues, including Zambia, Algeria, Morocco, Senegal, and many other colleagues as 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in my national capacity, I would like to just touch briefly on the issue of the hierarchy or the priorities to be established between the protocol and the existing conventions.","start":3262.15,"end":3277.19,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. 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Cameron.","start":3401.95,"end":3406.03,"topics":[],"words":[{"text":"Thank","start":3401.95,"end":3402.19},{"text":"you","start":3402.19,"end":3402.35},{"text":"very","start":3404.27,"end":3404.51},{"text":"much,","start":3404.51,"end":3404.99},{"text":"Cameron.","start":3405.31,"end":3406.03}]},{"text":"reminding us that the underlying objectives is also in the Framework Convention, and of course we have to have that in our minds when we go 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for Development for Children and Youth constituency of the Major Group for Children and Youth in Article 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would like to highlight four issues.","start":3448.95,"end":3450.71,"topics":[],"words":[{"text":"We","start":3448.95,"end":3449.11},{"text":"would","start":3449.11,"end":3449.23},{"text":"like","start":3449.23,"end":3449.43},{"text":"to","start":3449.43,"end":3449.55},{"text":"highlight","start":3449.55,"end":3449.99},{"text":"four","start":3449.99,"end":3450.27},{"text":"issues.","start":3450.27,"end":3450.71}]},{"text":"First, regarding paragraph one, we recommend an explicit cross-reference to Article 4 to ensure that the reference to residents of one or more states parties is applied consistently with the Protocol's residence rules.","start":3450.71,"end":3462.63,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}],"words":[{"text":"First,","start":3450.71,"end":3450.95},{"text":"regarding","start":3450.95,"end":3451.35},{"text":"paragraph","start":3451.35,"end":3452.07},{"text":"one,","start":3452.07,"end":3452.39},{"text":"we","start":3452.55,"end":3452.71},{"text":"recommend","start":3452.71,"end":3453.11},{"text":"an","start":3453.11,"end":3453.23},{"text":"explicit","start":3453.23,"end":3453.67},{"text":"cross-reference","start":3453.67,"end":3454.43},{"text":"to","start":3454.43,"end":3454.51},{"text":"Article","start":3454.51,"end":3454.87},{"text":"4","start":3454.87,"end":3455.19},{"text":"to","start":3455.19,"end":3455.27},{"text":"ensure","start":3455.27,"end":3455.83},{"text":"that","start":3456.15,"end":3456.55},{"text":"the","start":3456.55,"end":3456.71},{"text":"reference","start":3456.71,"end":3457.27},{"text":"to","start":3457.27,"end":3457.35},{"text":"residents","start":3457.35,"end":3457.83},{"text":"of","start":3457.91,"end":3458.11},{"text":"one","start":3458.23,"end":3458.55},{"text":"or","start":3458.55,"end":3458.63},{"text":"more","start":3458.63,"end":3458.87},{"text":"states","start":3458.87,"end":3459.19},{"text":"parties","start":3459.19,"end":3459.59},{"text":"is","start":3459.59,"end":3459.67},{"text":"applied","start":3459.67,"end":3459.99},{"text":"consistently","start":3459.99,"end":3461.03},{"text":"with","start":3461.03,"end":3461.19},{"text":"the","start":3461.19,"end":3461.27},{"text":"Protocol's","start":3461.27,"end":3461.83},{"text":"residence","start":3461.83,"end":3462.31},{"text":"rules.","start":3462.31,"end":3462.63}]},{"text":"Residence should determine the personal scope of the Protocol without displacing any additional governing entitlement to specific benefits under other provisions.","start":3462.95,"end":3472.47,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}],"words":[{"text":"Residence","start":3462.95,"end":3463.39},{"text":"should","start":3463.39,"end":3463.79},{"text":"determine","start":3463.79,"end":3464.23},{"text":"the","start":3464.23,"end":3464.35},{"text":"personal","start":3464.39,"end":3464.83},{"text":"scope","start":3464.83,"end":3465.15},{"text":"of","start":3465.15,"end":3465.27},{"text":"the","start":3465.27,"end":3465.35},{"text":"Protocol","start":3465.35,"end":3465.99},{"text":"without","start":3466.23,"end":3466.51},{"text":"displacing","start":3466.51,"end":3467.11},{"text":"any","start":3467.11,"end":3467.43},{"text":"additional","start":3467.43,"end":3468.11},{"text":"governing","start":3468.39,"end":3468.95},{"text":"entitlement","start":3468.95,"end":3469.67},{"text":"to","start":3469.67,"end":3469.83},{"text":"specific","start":3469.83,"end":3470.19},{"text":"benefits","start":3470.19,"end":3470.63},{"text":"under","start":3470.63,"end":3471.11},{"text":"other","start":3471.59,"end":3471.87},{"text":"provisions.","start":3471.87,"end":3472.47}]},{"text":"Second, we support paragraph two and its recognition of fiscally transparent entities and arrangements.","start":3472.79,"end":3478.79,"topics":[],"words":[{"text":"Second,","start":3472.79,"end":3473.19},{"text":"we","start":3473.35,"end":3473.51},{"text":"support","start":3473.51,"end":3473.91},{"text":"paragraph","start":3473.91,"end":3474.31},{"text":"two","start":3474.31,"end":3474.55},{"text":"and","start":3474.55,"end":3474.75},{"text":"its","start":3474.75,"end":3474.95},{"text":"recognition","start":3474.95,"end":3475.59},{"text":"of","start":3475.59,"end":3475.71},{"text":"fiscally","start":3475.71,"end":3476.15},{"text":"transparent","start":3476.15,"end":3476.83},{"text":"entities","start":3476.83,"end":3477.43},{"text":"and","start":3477.75,"end":3478.07},{"text":"arrangements.","start":3478.07,"end":3478.79}]},{"text":"However, greater clarity is needed where states parties classify the same entity or arrangement differently.","start":3478.79,"end":3485.35,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}],"words":[{"text":"However,","start":3478.79,"end":3479.51},{"text":"greater","start":3479.67,"end":3480.15},{"text":"clarity","start":3480.15,"end":3480.71},{"text":"is","start":3480.71,"end":3480.95},{"text":"needed","start":3480.95,"end":3481.35},{"text":"where","start":3481.55,"end":3481.83},{"text":"states","start":3481.83,"end":3482.15},{"text":"parties","start":3482.15,"end":3482.55},{"text":"classify","start":3482.55,"end":3483.43},{"text":"the","start":3483.43,"end":3483.55},{"text":"same","start":3483.55,"end":3483.75},{"text":"entity","start":3483.75,"end":3484.15},{"text":"or","start":3484.15,"end":3484.35},{"text":"arrangement","start":3484.35,"end":3484.79},{"text":"differently.","start":3484.79,"end":3485.35}]},{"text":"We therefore recommend defining wholly or partly fiscally transparent.","start":3485.59,"end":3489.27,"topics":[],"words":[{"text":"We","start":3485.59,"end":3485.75},{"text":"therefore","start":3485.75,"end":3486.07},{"text":"recommend","start":3486.07,"end":3486.59},{"text":"defining","start":3486.59,"end":3487.03},{"text":"wholly","start":3487.03,"end":3487.35},{"text":"or","start":3487.35,"end":3487.51},{"text":"partly","start":3487.51,"end":3487.99},{"text":"fiscally","start":3487.99,"end":3488.55},{"text":"transparent.","start":3488.55,"end":3489.27}]},{"text":"and providing for consultation between component competent authorities where classification differences may result in double taxation, double non taxation or denial of protocol benefits third regarding paragraph three we support the objective of preserving legitimate source country taxing rates where income is subject to a low level tech of taxation in the resident state at the same time the rule should operate through clear objective and consistently applicable criteria the low tax they're sold should be determined only after careful assessment of its inter interaction with the protocol as a whole including its impact on on source country taxing rights and the fiscal interests of countries the relationship between the sedatory rate test and the tax paid test should also be clearly defined.","start":3490.07,"end":3536.31,"topics":[{"key":"anti-avoidance-rules","label":"Anti-Avoidance and Subject-to-Tax Rules","description":"Several interventions addressed safeguards against base erosion, low-tax outcomes, and protocol shopping. These included support for a subject-to-tax style rule, concern over treaty-shopping through conduit entities, and calls for clearer anti-abuse language."},{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."},{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax 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protocol should specify which taxes exemptions, exclusions and reductions are taken into account, as well as the relevant taxable period, currency conversion rules and treatment of subsequent tax adjustments.","start":3536.47,"end":3550.71,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"The","start":3536.47,"end":3536.63},{"text":"protocol","start":3536.63,"end":3537.03},{"text":"should","start":3537.03,"end":3537.27},{"text":"specify","start":3537.27,"end":3537.79},{"text":"which","start":3537.79,"end":3538.07},{"text":"taxes","start":3538.07,"end":3538.51},{"text":"exemptions,","start":3538.51,"end":3539.19},{"text":"exclusions","start":3539.51,"end":3540.23},{"text":"and","start":3540.23,"end":3540.47},{"text":"reductions","start":3540.47,"end":3541.03},{"text":"are","start":3541.03,"end":3541.19},{"text":"taken","start":3541.19,"end":3541.51},{"text":"into","start":3541.51,"end":3541.71},{"text":"account,","start":3541.71,"end":3542.07},{"text":"as","start":3542.39,"end":3542.55},{"text":"well","start":3542.55,"end":3542.87},{"text":"as","start":3542.87,"end":3543.27},{"text":"the","start":3543.27,"end":3543.55},{"text":"relevant","start":3543.55,"end":3544.11},{"text":"taxable","start":3544.11,"end":3544.63},{"text":"period,","start":3544.63,"end":3545.19},{"text":"currency","start":3545.35,"end":3545.83},{"text":"conversion","start":3545.83,"end":3546.47},{"text":"rules","start":3546.47,"end":3546.87},{"text":"and","start":3546.87,"end":3547.15},{"text":"treatment","start":3547.15,"end":3547.55},{"text":"of","start":3547.55,"end":3547.67},{"text":"subsequent","start":3547.67,"end":3549.11},{"text":"tax","start":3549.43,"end":3549.99},{"text":"adjustments.","start":3550.15,"end":3550.71}]},{"text":"We also recommend reconsidering the reference to the beneficial owner in paragraph 3B, where entitlement depends on the person to whom income is attributed for tax purposes.","start":3551.03,"end":3559.75,"topics":[],"words":[{"text":"We","start":3551.03,"end":3551.19},{"text":"also","start":3551.19,"end":3551.67},{"text":"recommend","start":3551.67,"end":3552.07},{"text":"reconsidering","start":3552.07,"end":3552.71},{"text":"the","start":3552.71,"end":3552.79},{"text":"reference","start":3552.79,"end":3553.31},{"text":"to","start":3553.31,"end":3553.43},{"text":"the","start":3553.43,"end":3553.59},{"text":"beneficial","start":3553.59,"end":3554.19},{"text":"owner","start":3554.19,"end":3554.47},{"text":"in","start":3554.47,"end":3554.55},{"text":"paragraph","start":3554.55,"end":3554.99},{"text":"3B,","start":3554.99,"end":3555.51},{"text":"where","start":3555.71,"end":3555.95},{"text":"entitlement","start":3555.95,"end":3556.43},{"text":"depends","start":3556.43,"end":3556.79},{"text":"on","start":3556.79,"end":3556.91},{"text":"the","start":3556.91,"end":3556.99},{"text":"person","start":3556.99,"end":3557.43},{"text":"to","start":3557.43,"end":3557.55},{"text":"whom","start":3557.55,"end":3557.75},{"text":"income","start":3557.75,"end":3558.15},{"text":"is","start":3558.15,"end":3558.31},{"text":"attributed","start":3558.31,"end":3558.79},{"text":"for","start":3558.79,"end":3558.91},{"text":"tax","start":3558.91,"end":3559.19},{"text":"purposes.","start":3559.19,"end":3559.75}]},{"text":"Protocol should either define this term clearly or use more precise attribution based language.","start":3560.15,"end":3565.75,"topics":[],"words":[{"text":"Protocol","start":3560.15,"end":3560.55},{"text":"should","start":3560.55,"end":3560.95},{"text":"either","start":3561.15,"end":3561.35},{"text":"define","start":3561.35,"end":3561.71},{"text":"this","start":3561.71,"end":3561.91},{"text":"term","start":3561.91,"end":3562.15},{"text":"clearly","start":3562.15,"end":3562.63},{"text":"or","start":3562.63,"end":3562.87},{"text":"use","start":3562.87,"end":3563.11},{"text":"more","start":3563.11,"end":3563.35},{"text":"precise","start":3563.35,"end":3563.83},{"text":"attribution","start":3563.83,"end":3564.55},{"text":"based","start":3564.87,"end":3565.19},{"text":"language.","start":3565.19,"end":3565.75}]},{"text":"The provision should further distinguish inappropriate non-taxation and artificial arrangement from legitimate, transparent and substance-based tax measures adopted for recognized public policy objectives.","start":3565.83,"end":3577.75,"topics":[{"key":"anti-avoidance-rules","label":"Anti-Avoidance and Subject-to-Tax Rules","description":"Several interventions addressed safeguards against base erosion, low-tax outcomes, and protocol shopping. 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Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."}],"words":[{"text":"For","start":3672.59,"end":3672.75},{"text":"African","start":3672.75,"end":3673.15},{"text":"countries,","start":3673.15,"end":3673.71},{"text":"our","start":3673.71,"end":3673.83},{"text":"economies","start":3673.87,"end":3674.55},{"text":"are","start":3674.55,"end":3674.67},{"text":"increasingly","start":3674.67,"end":3675.31},{"text":"digitalized","start":3675.31,"end":3676.11},{"text":"and","start":3676.11,"end":3676.35},{"text":"services.","start":3676.35,"end":3676.91}]}]},{"sentences":[{"text":"Can now be delivered and supplied into our markets without the physical presence on which traditional tax rules have largely relied.","start":3676.91,"end":3685.15,"topics":[{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. 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Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."}],"words":[{"text":"Therefore","start":3686.31,"end":3687.03},{"text":"provides","start":3687.35,"end":3687.83},{"text":"an","start":3687.83,"end":3687.91},{"text":"important","start":3687.91,"end":3688.39},{"text":"opportunity","start":3688.39,"end":3689.11},{"text":"to","start":3689.11,"end":3689.31},{"text":"strengthen","start":3689.31,"end":3689.83},{"text":"source-based","start":3689.83,"end":3690.55},{"text":"country","start":3690.55,"end":3690.87},{"text":"taxation","start":3690.87,"end":3691.75},{"text":"while","start":3691.87,"end":3692.23},{"text":"also","start":3692.23,"end":3692.47},{"text":"ensuring","start":3692.55,"end":3693.11},{"text":"that","start":3693.11,"end":3693.27},{"text":"the","start":3693.27,"end":3693.39},{"text":"rules","start":3693.39,"end":3693.83},{"text":"remain","start":3693.83,"end":3694.23},{"text":"workable","start":3694.23,"end":3694.79},{"text":"and","start":3694.79,"end":3695.11},{"text":"practical.","start":3695.11,"end":3695.91}]},{"text":"On this basis, we support the Africa's group view that the current draft provides a useful basis of continuing the negotiations and support the contributions made by the Africa group.","start":3696.47,"end":3708.39,"topics":[],"words":[{"text":"On","start":3696.47,"end":3696.63},{"text":"this","start":3696.63,"end":3696.87},{"text":"basis,","start":3696.87,"end":3697.51},{"text":"we","start":3697.67,"end":3697.83},{"text":"support","start":3697.83,"end":3698.23},{"text":"the","start":3698.23,"end":3698.35},{"text":"Africa's","start":3698.35,"end":3698.87},{"text":"group","start":3698.87,"end":3699.11},{"text":"view","start":3699.11,"end":3699.67},{"text":"that","start":3699.83,"end":3699.99},{"text":"the","start":3699.99,"end":3700.11},{"text":"current","start":3700.11,"end":3700.55},{"text":"draft","start":3700.55,"end":3701.11},{"text":"provides","start":3701.11,"end":3701.55},{"text":"a","start":3701.55,"end":3701.59},{"text":"useful","start":3701.59,"end":3702.07},{"text":"basis","start":3702.07,"end":3702.55},{"text":"of","start":3702.63,"end":3702.75},{"text":"continuing","start":3702.75,"end":3703.43},{"text":"the","start":3703.43,"end":3703.55},{"text":"negotiations","start":3703.55,"end":3704.63},{"text":"and","start":3704.91,"end":3705.07},{"text":"support","start":3705.07,"end":3705.59},{"text":"the","start":3705.59,"end":3705.75},{"text":"contributions","start":3705.75,"end":3706.63},{"text":"made","start":3706.63,"end":3706.95},{"text":"by","start":3707.11,"end":3707.51},{"text":"the","start":3707.51,"end":3707.63},{"text":"Africa","start":3707.63,"end":3708.07},{"text":"group.","start":3708.07,"end":3708.39}]}]},{"sentences":[{"text":"And the African countries, especially on strengthening paragraphs two to four.","start":3708.63,"end":3712.47,"topics":[{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."}],"words":[{"text":"And","start":3708.63,"end":3708.75},{"text":"the","start":3708.75,"end":3708.83},{"text":"African","start":3708.83,"end":3709.27},{"text":"countries,","start":3709.27,"end":3709.83},{"text":"especially","start":3709.83,"end":3710.39},{"text":"on","start":3710.39,"end":3710.51},{"text":"strengthening","start":3710.51,"end":3711.03},{"text":"paragraphs","start":3711.03,"end":3711.67},{"text":"two","start":3711.67,"end":3712.03},{"text":"to","start":3712.03,"end":3712.11},{"text":"four.","start":3712.15,"end":3712.47}]},{"text":"More broadly, for Africa, the protocol should contribute to an international tax system that strengthens domestic resource mobilization.","start":3712.87,"end":3720.87,"topics":[{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. 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Thank you, Chair, for giving us the floor.","start":3747.35,"end":3750.75,"topics":[],"words":[{"text":"Thank","start":3747.35,"end":3747.55},{"text":"you,","start":3747.55,"end":3747.63},{"text":"Chair.","start":3747.63,"end":3747.95},{"text":"Thank","start":3749.07,"end":3749.23},{"text":"you,","start":3749.23,"end":3749.31},{"text":"Chair,","start":3749.31,"end":3749.51},{"text":"for","start":3749.51,"end":3749.63},{"text":"giving","start":3749.63,"end":3749.99},{"text":"us","start":3749.99,"end":3750.11},{"text":"the","start":3750.11,"end":3750.23},{"text":"floor.","start":3750.23,"end":3750.75}]},{"text":"We will start by congratulating you and the team who worked on this quality draft for producing the draft and also for laying foundation for further discussion on this matter.","start":3750.83,"end":3761.47,"topics":[],"words":[{"text":"We","start":3750.83,"end":3751.07},{"text":"will","start":3751.07,"end":3751.23},{"text":"start","start":3751.23,"end":3751.55},{"text":"by","start":3751.55,"end":3751.79},{"text":"congratulating","start":3751.79,"end":3752.67},{"text":"you","start":3752.67,"end":3752.99},{"text":"and","start":3753.07,"end":3753.27},{"text":"the","start":3753.27,"end":3753.35},{"text":"team","start":3753.35,"end":3753.63},{"text":"who","start":3753.63,"end":3753.87},{"text":"worked","start":3753.87,"end":3754.19},{"text":"on","start":3754.19,"end":3754.35},{"text":"this","start":3754.39,"end":3754.67},{"text":"quality","start":3754.67,"end":3755.03},{"text":"draft","start":3755.03,"end":3755.39},{"text":"for","start":3756.11,"end":3756.27},{"text":"producing","start":3756.27,"end":3756.83},{"text":"the","start":3756.83,"end":3756.91},{"text":"draft","start":3756.91,"end":3757.47},{"text":"and","start":3757.99,"end":3758.15},{"text":"also","start":3758.15,"end":3758.43},{"text":"for","start":3758.43,"end":3758.59},{"text":"laying","start":3758.59,"end":3758.91},{"text":"foundation","start":3758.91,"end":3759.55},{"text":"for","start":3759.55,"end":3759.71},{"text":"further","start":3759.71,"end":3760.03},{"text":"discussion","start":3760.03,"end":3760.55},{"text":"on","start":3760.55,"end":3760.75},{"text":"this","start":3760.75,"end":3760.99},{"text":"matter.","start":3760.99,"end":3761.47}]},{"text":"One thing is clear, Chair, that our system for taxing cross-border services as of today is not sufficient.","start":3762.43,"end":3769.63,"topics":[{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."}],"words":[{"text":"One","start":3762.43,"end":3762.71},{"text":"thing","start":3762.71,"end":3762.91},{"text":"is","start":3762.95,"end":3763.15},{"text":"clear,","start":3763.15,"end":3763.47},{"text":"Chair,","start":3763.47,"end":3763.87},{"text":"that","start":3764.27,"end":3764.59},{"text":"our","start":3764.99,"end":3765.07},{"text":"system","start":3765.07,"end":3765.55},{"text":"for","start":3765.55,"end":3765.75},{"text":"taxing","start":3765.75,"end":3766.23},{"text":"cross-border","start":3766.23,"end":3766.75},{"text":"services","start":3766.75,"end":3767.31},{"text":"as","start":3767.31,"end":3767.47},{"text":"of","start":3767.47,"end":3767.63},{"text":"today","start":3767.63,"end":3768.19},{"text":"is","start":3768.51,"end":3768.67},{"text":"not","start":3768.67,"end":3768.91},{"text":"sufficient.","start":3768.91,"end":3769.63}]},{"text":"It's not sufficient when you look at our domestic frameworks and it's not sufficient when you look at our existing network of tax treaties.","start":3770.19,"end":3777.71,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}],"words":[{"text":"It's","start":3770.19,"end":3770.43},{"text":"not","start":3770.43,"end":3770.55},{"text":"sufficient","start":3770.59,"end":3771.23},{"text":"when","start":3771.27,"end":3771.43},{"text":"you","start":3771.43,"end":3771.55},{"text":"look","start":3771.55,"end":3771.87},{"text":"at","start":3771.87,"end":3772.03},{"text":"our","start":3772.03,"end":3772.27},{"text":"domestic","start":3772.27,"end":3772.83},{"text":"frameworks","start":3772.83,"end":3773.47},{"text":"and","start":3773.87,"end":3774.03},{"text":"it's","start":3774.03,"end":3774.31},{"text":"not","start":3774.31,"end":3774.43},{"text":"sufficient","start":3774.43,"end":3774.91},{"text":"when","start":3774.91,"end":3775.07},{"text":"you","start":3775.07,"end":3775.19},{"text":"look","start":3775.19,"end":3775.39},{"text":"at","start":3775.39,"end":3775.59},{"text":"our","start":3775.59,"end":3775.71},{"text":"existing","start":3775.71,"end":3776.23},{"text":"network","start":3776.23,"end":3776.75},{"text":"of","start":3776.75,"end":3776.91},{"text":"tax","start":3776.91,"end":3777.19},{"text":"treaties.","start":3777.19,"end":3777.71}]},{"text":"If it were to be sufficient, Chair, we would not be here talking about this protocol.","start":3778.47,"end":3783.11,"topics":[],"words":[{"text":"If","start":3778.47,"end":3778.59},{"text":"it","start":3778.59,"end":3778.83},{"text":"were","start":3778.83,"end":3779.07},{"text":"to","start":3779.07,"end":3779.23},{"text":"be","start":3779.23,"end":3779.31},{"text":"sufficient,","start":3779.31,"end":3779.99},{"text":"Chair,","start":3779.99,"end":3780.19},{"text":"we","start":3780.19,"end":3780.39},{"text":"would","start":3780.39,"end":3780.51},{"text":"not","start":3780.51,"end":3780.83},{"text":"be","start":3780.83,"end":3781.23},{"text":"here","start":3781.23,"end":3781.39},{"text":"talking","start":3781.75,"end":3782.07},{"text":"about","start":3782.07,"end":3782.39},{"text":"this","start":3782.39,"end":3782.59},{"text":"protocol.","start":3782.59,"end":3783.11}]},{"text":"To that extent, we are happy that the powers to make whatever we think works better lies in the hands of members.","start":3783.15,"end":3790.03,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"To","start":3783.15,"end":3783.31},{"text":"that","start":3783.31,"end":3783.55},{"text":"extent,","start":3783.55,"end":3784.19},{"text":"we","start":3784.67,"end":3784.95},{"text":"are","start":3784.95,"end":3785.03},{"text":"happy","start":3785.03,"end":3785.47},{"text":"that","start":3785.47,"end":3785.71},{"text":"the","start":3785.71,"end":3785.79},{"text":"powers","start":3785.79,"end":3786.27},{"text":"to","start":3786.27,"end":3786.51},{"text":"make","start":3786.51,"end":3786.83},{"text":"whatever","start":3786.83,"end":3787.39},{"text":"we","start":3787.39,"end":3787.55},{"text":"think","start":3787.55,"end":3787.79},{"text":"works","start":3787.79,"end":3788.07},{"text":"better","start":3788.11,"end":3788.43},{"text":"lies","start":3788.43,"end":3788.79},{"text":"in","start":3788.79,"end":3788.91},{"text":"the","start":3788.91,"end":3788.99},{"text":"hands","start":3788.99,"end":3789.35},{"text":"of","start":3789.35,"end":3789.47},{"text":"members.","start":3789.47,"end":3790.03}]},{"text":"And to that extent, we want to encourage members to pull together to ensure that rules that are developed are such that satisfy that strategic objective.","start":3790.59,"end":3799.99,"topics":[{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."}],"words":[{"text":"And","start":3790.59,"end":3790.91},{"text":"to","start":3791.07,"end":3791.47},{"text":"that","start":3791.47,"end":3791.71},{"text":"extent,","start":3791.71,"end":3792.19},{"text":"we","start":3792.19,"end":3792.27},{"text":"want","start":3792.27,"end":3792.55},{"text":"to","start":3792.55,"end":3792.63},{"text":"encourage","start":3792.63,"end":3792.99},{"text":"members","start":3793.07,"end":3793.47},{"text":"to","start":3793.47,"end":3793.63},{"text":"pull","start":3793.63,"end":3793.87},{"text":"together","start":3793.87,"end":3794.39},{"text":"to","start":3794.75,"end":3794.91},{"text":"ensure","start":3794.91,"end":3795.27},{"text":"that","start":3795.27,"end":3795.39},{"text":"rules","start":3795.39,"end":3795.79},{"text":"that","start":3795.79,"end":3795.95},{"text":"are","start":3795.95,"end":3796.03},{"text":"developed","start":3796.03,"end":3796.67},{"text":"are","start":3796.67,"end":3796.79},{"text":"such","start":3796.79,"end":3797.23},{"text":"that","start":3797.55,"end":3797.87},{"text":"satisfy","start":3797.87,"end":3798.59},{"text":"that","start":3798.59,"end":3798.75},{"text":"strategic","start":3798.75,"end":3799.47},{"text":"objective.","start":3799.47,"end":3799.99}]},{"text":"It's not enough to say the draft is not good or is good.","start":3800.51,"end":3803.39,"topics":[],"words":[{"text":"It's","start":3800.51,"end":3800.75},{"text":"not","start":3800.75,"end":3800.87},{"text":"enough","start":3800.87,"end":3801.23},{"text":"to","start":3801.23,"end":3801.39},{"text":"say","start":3801.39,"end":3801.51},{"text":"the","start":3801.51,"end":3801.59},{"text":"draft","start":3801.59,"end":3802.11},{"text":"is","start":3802.11,"end":3802.27},{"text":"not","start":3802.27,"end":3802.51},{"text":"good","start":3802.51,"end":3802.79},{"text":"or","start":3802.79,"end":3802.87},{"text":"is","start":3802.87,"end":3803.07},{"text":"good.","start":3803.07,"end":3803.39}]},{"text":"But what alternative do we have and what text do we have to supply to move the work forward?","start":3803.99,"end":3809.83,"topics":[],"words":[{"text":"But","start":3803.99,"end":3804.15},{"text":"what","start":3804.15,"end":3804.47},{"text":"alternative","start":3804.47,"end":3805.11},{"text":"do","start":3805.11,"end":3805.27},{"text":"we","start":3805.27,"end":3805.43},{"text":"have","start":3805.43,"end":3805.79},{"text":"and","start":3805.79,"end":3805.91},{"text":"what","start":3806.15,"end":3806.59},{"text":"text","start":3806.59,"end":3806.91},{"text":"do","start":3806.91,"end":3807.03},{"text":"we","start":3807.03,"end":3807.19},{"text":"have","start":3807.19,"end":3807.43},{"text":"to","start":3807.43,"end":3807.59},{"text":"supply","start":3807.59,"end":3808.23},{"text":"to","start":3808.63,"end":3808.79},{"text":"move","start":3808.79,"end":3809.03},{"text":"the","start":3809.03,"end":3809.11},{"text":"work","start":3809.11,"end":3809.35},{"text":"forward?","start":3809.35,"end":3809.83}]},{"text":"We have two additional issues which we want to highlight on.","start":3810.31,"end":3813.91,"topics":[],"words":[{"text":"We","start":3810.31,"end":3810.79},{"text":"have","start":3810.79,"end":3811.11},{"text":"two","start":3811.11,"end":3811.51},{"text":"additional","start":3811.51,"end":3812.23},{"text":"issues","start":3812.23,"end":3812.63},{"text":"which","start":3812.63,"end":3812.87},{"text":"we","start":3812.87,"end":3812.95},{"text":"want","start":3812.95,"end":3813.19},{"text":"to","start":3813.19,"end":3813.27},{"text":"highlight","start":3813.27,"end":3813.75},{"text":"on.","start":3813.79,"end":3813.91}]},{"text":"One is on optionality.","start":3814.31,"end":3815.75,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"One","start":3814.31,"end":3814.55},{"text":"is","start":3814.55,"end":3814.79},{"text":"on","start":3814.79,"end":3814.91},{"text":"optionality.","start":3814.91,"end":3815.75}]},{"text":"Chair, we are not strangers to international multilateral instrument.","start":3816.39,"end":3821.27,"topics":[],"words":[{"text":"Chair,","start":3816.39,"end":3816.79},{"text":"we","start":3816.79,"end":3817.51},{"text":"are","start":3817.59,"end":3817.67},{"text":"not","start":3817.67,"end":3817.99},{"text":"strangers","start":3817.99,"end":3818.71},{"text":"to","start":3818.71,"end":3818.87},{"text":"international","start":3818.87,"end":3819.83},{"text":"multilateral","start":3819.83,"end":3820.55},{"text":"instrument.","start":3820.55,"end":3821.27}]},{"text":"And going by the protocol, the terms of reference, and the element which touches this protocol in the convention, we see that the framework protocol design, which allows parties to opt into this protocol or not to do so, providing enough flexibility for member states.","start":3822.07,"end":3840.99,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"And","start":3822.07,"end":3822.39},{"text":"going","start":3822.47,"end":3823.03},{"text":"by","start":3823.11,"end":3823.43},{"text":"the","start":3823.51,"end":3823.63},{"text":"protocol,","start":3823.63,"end":3824.31},{"text":"the","start":3824.31,"end":3824.43},{"text":"terms","start":3824.43,"end":3824.79},{"text":"of","start":3824.79,"end":3824.95},{"text":"reference,","start":3824.95,"end":3825.51},{"text":"and","start":3825.51,"end":3825.75},{"text":"the","start":3825.83,"end":3825.91},{"text":"element","start":3825.91,"end":3826.47},{"text":"which","start":3826.47,"end":3826.67},{"text":"touches","start":3826.67,"end":3827.11},{"text":"this","start":3827.11,"end":3827.31},{"text":"protocol","start":3827.31,"end":3827.83},{"text":"in","start":3827.83,"end":3827.95},{"text":"the","start":3827.95,"end":3828.03},{"text":"convention,","start":3828.03,"end":3828.79},{"text":"we","start":3829.35,"end":3829.59},{"text":"see","start":3829.59,"end":3829.83},{"text":"that","start":3829.83,"end":3830.11},{"text":"the","start":3830.11,"end":3830.19},{"text":"framework","start":3830.47,"end":3831.27},{"text":"protocol","start":3831.55,"end":3832.23},{"text":"design,","start":3832.23,"end":3832.79},{"text":"which","start":3833.23,"end":3833.43},{"text":"allows","start":3833.43,"end":3833.83},{"text":"parties","start":3833.83,"end":3834.23},{"text":"to","start":3834.23,"end":3834.47},{"text":"opt","start":3834.47,"end":3834.79},{"text":"into","start":3834.79,"end":3835.27},{"text":"this","start":3835.51,"end":3835.75},{"text":"protocol","start":3835.75,"end":3836.39},{"text":"or","start":3836.55,"end":3836.79},{"text":"not","start":3836.83,"end":3837.15},{"text":"to","start":3837.15,"end":3837.23},{"text":"do","start":3837.23,"end":3837.43},{"text":"so,","start":3837.43,"end":3837.75},{"text":"providing","start":3838.39,"end":3838.99},{"text":"enough","start":3838.99,"end":3839.19},{"text":"flexibility","start":3839.19,"end":3839.91},{"text":"for","start":3839.91,"end":3840.15},{"text":"member","start":3840.15,"end":3840.51},{"text":"states.","start":3840.51,"end":3840.99}]},{"text":"But what we have seen this morning is optionality being pushed to extreme, where it is optional whether a party enters into the protocol, it is optional what scope of instrument to be covered by the protocol, and it's optional which paragraphs and possibly which sentence that applies to party.","start":3841.59,"end":3859.99,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"But","start":3841.59,"end":3841.75},{"text":"what","start":3841.75,"end":3841.95},{"text":"we","start":3841.95,"end":3842.11},{"text":"have","start":3842.11,"end":3842.31},{"text":"seen","start":3842.31,"end":3842.55},{"text":"this","start":3842.55,"end":3842.71},{"text":"morning","start":3842.71,"end":3843.27},{"text":"is","start":3843.59,"end":3843.83},{"text":"optionality","start":3843.83,"end":3844.55},{"text":"being","start":3844.55,"end":3844.75},{"text":"pushed","start":3844.79,"end":3845.15},{"text":"to","start":3845.15,"end":3845.23},{"text":"extreme,","start":3845.23,"end":3845.75},{"text":"where","start":3846.31,"end":3846.87},{"text":"it","start":3847.19,"end":3847.35},{"text":"is","start":3847.35,"end":3847.59},{"text":"optional","start":3847.59,"end":3847.99},{"text":"whether","start":3847.99,"end":3848.31},{"text":"a","start":3848.31,"end":3848.35},{"text":"party","start":3848.35,"end":3848.75},{"text":"enters","start":3848.75,"end":3849.11},{"text":"into","start":3849.11,"end":3849.51},{"text":"the","start":3849.67,"end":3849.79},{"text":"protocol,","start":3849.83,"end":3850.47},{"text":"it","start":3850.79,"end":3850.87},{"text":"is","start":3850.87,"end":3851.03},{"text":"optional","start":3851.03,"end":3851.51},{"text":"what","start":3851.51,"end":3851.79},{"text":"scope","start":3851.79,"end":3852.15},{"text":"of","start":3852.15,"end":3852.31},{"text":"instrument","start":3852.31,"end":3852.91},{"text":"to","start":3852.91,"end":3853.03},{"text":"be","start":3853.07,"end":3853.19},{"text":"covered","start":3853.19,"end":3853.55},{"text":"by","start":3853.55,"end":3853.71},{"text":"the","start":3853.71,"end":3853.79},{"text":"protocol,","start":3853.83,"end":3854.39},{"text":"and","start":3854.71,"end":3854.87},{"text":"it's","start":3854.87,"end":3855.11},{"text":"optional","start":3855.11,"end":3855.55},{"text":"which","start":3855.55,"end":3855.83},{"text":"paragraphs","start":3855.83,"end":3856.63},{"text":"and","start":3856.63,"end":3856.95},{"text":"possibly","start":3857.03,"end":3857.55},{"text":"which","start":3857.55,"end":3857.75},{"text":"sentence","start":3857.75,"end":3858.39},{"text":"that","start":3858.71,"end":3858.95},{"text":"applies","start":3858.95,"end":3859.43},{"text":"to","start":3859.43,"end":3859.51},{"text":"party.","start":3859.51,"end":3859.99}]},{"text":"Chair, as technical organization, we struggle to find precedents for such instrument because even the multilateral instrument on BEPS, which have been referenced to by some members, have core principles locked in which are not optional to members.","start":3860.47,"end":3877.91,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"Chair,","start":3860.47,"end":3860.87},{"text":"as","start":3860.95,"end":3861.27},{"text":"technical","start":3861.27,"end":3861.91},{"text":"organization,","start":3861.91,"end":3862.63},{"text":"we","start":3862.63,"end":3862.79},{"text":"struggle","start":3862.79,"end":3863.35},{"text":"to","start":3863.35,"end":3863.51},{"text":"find","start":3863.51,"end":3863.83},{"text":"precedents","start":3863.83,"end":3864.71},{"text":"for","start":3865.03,"end":3865.23},{"text":"such","start":3865.23,"end":3865.75},{"text":"instrument","start":3865.75,"end":3866.47},{"text":"because","start":3866.87,"end":3867.27},{"text":"even","start":3867.27,"end":3867.55},{"text":"the","start":3867.55,"end":3867.63},{"text":"multilateral","start":3867.63,"end":3868.31},{"text":"instrument","start":3868.31,"end":3868.87},{"text":"on","start":3868.87,"end":3868.99},{"text":"BEPS,","start":3868.99,"end":3869.59},{"text":"which","start":3869.79,"end":3870.11},{"text":"have","start":3870.11,"end":3870.27},{"text":"been","start":3870.27,"end":3870.43},{"text":"referenced","start":3870.43,"end":3871.07},{"text":"to","start":3871.07,"end":3871.19},{"text":"by","start":3871.19,"end":3871.43},{"text":"some","start":3871.43,"end":3871.75},{"text":"members,","start":3871.75,"end":3872.39},{"text":"have","start":3872.95,"end":3873.51},{"text":"core","start":3873.83,"end":3874.31},{"text":"principles","start":3874.47,"end":3875.11},{"text":"locked","start":3875.11,"end":3875.59},{"text":"in","start":3875.59,"end":3875.71},{"text":"which","start":3875.71,"end":3875.99},{"text":"are","start":3875.99,"end":3876.07},{"text":"not","start":3876.07,"end":3876.31},{"text":"optional","start":3876.31,"end":3876.91},{"text":"to","start":3877.11,"end":3877.27},{"text":"members.","start":3877.27,"end":3877.91}]},{"text":"We believe that to maintain the integrity of this protocol, unchecked optionality have potential to derail this work, defeat the mandate of this work stream and make everything unattainable and we ask members to desist from such direction.","start":3878.23,"end":3895.87,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. 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want of time, Chair, we will submit our remaining comment via written input and we thank 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you very much, Attaf, and we look forward to receive your written input.","start":3948.67,"end":3953.75,"topics":[],"words":[{"text":"Thank","start":3948.67,"end":3948.99},{"text":"you","start":3948.99,"end":3949.11},{"text":"very","start":3949.15,"end":3949.47},{"text":"much,","start":3949.47,"end":3949.95},{"text":"Attaf,","start":3949.95,"end":3950.91},{"text":"and","start":3950.91,"end":3951.31},{"text":"we","start":3951.31,"end":3951.47},{"text":"look","start":3951.47,"end":3951.71},{"text":"forward","start":3951.71,"end":3952.07},{"text":"to","start":3952.07,"end":3952.19},{"text":"receive","start":3952.19,"end":3952.67},{"text":"your","start":3952.67,"end":3953.11},{"text":"written","start":3953.11,"end":3953.39},{"text":"input.","start":3953.39,"end":3953.75}]},{"text":"Thank you very 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Chair.","start":4137.49,"end":4138.77,"topics":[],"words":[{"text":"Thank","start":4137.49,"end":4137.77},{"text":"you,","start":4137.77,"end":4137.93},{"text":"Madam","start":4138.01,"end":4138.33},{"text":"Chair.","start":4138.33,"end":4138.77}]},{"text":"It's nice to see you here.","start":4138.77,"end":4140.17,"topics":[],"words":[{"text":"It's","start":4138.77,"end":4139.01},{"text":"nice","start":4139.05,"end":4139.29},{"text":"to","start":4139.45,"end":4139.65},{"text":"see","start":4139.69,"end":4139.93},{"text":"you","start":4139.93,"end":4140.05},{"text":"here.","start":4140.05,"end":4140.17}]},{"text":"And I speak on behalf of ICRIT.","start":4140.21,"end":4144.25,"topics":[],"words":[{"text":"And","start":4140.21,"end":4140.45},{"text":"I","start":4140.45,"end":4140.49},{"text":"speak","start":4140.49,"end":4141.17},{"text":"on","start":4141.17,"end":4141.25},{"text":"behalf","start":4141.25,"end":4141.65},{"text":"of","start":4141.73,"end":4141.81},{"text":"ICRIT.","start":4142.97,"end":4144.25}]},{"text":"My name is Veronica Grondona.","start":4144.33,"end":4146.01,"topics":[],"words":[{"text":"My","start":4144.33,"end":4144.49},{"text":"name","start":4144.49,"end":4144.65},{"text":"is","start":4144.65,"end":4144.77},{"text":"Veronica","start":4144.77,"end":4145.25},{"text":"Grondona.","start":4145.29,"end":4146.01}]},{"text":"ICRIT recognizes that gross basis withholding taxes, such as those proposed in Articles 5, 6, and 7, present technical advantages.","start":4146.73,"end":4155.49,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs. Net Taxation","description":"Speakers debated whether 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Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."}],"words":[{"text":"First,","start":4466.17,"end":4466.57},{"text":"we","start":4466.57,"end":4466.77},{"text":"believe","start":4466.77,"end":4467.05},{"text":"that","start":4467.05,"end":4467.25},{"text":"this","start":4467.25,"end":4467.53},{"text":"protocol","start":4467.53,"end":4467.93},{"text":"could","start":4467.93,"end":4468.17},{"text":"benefit","start":4468.17,"end":4468.65},{"text":"from","start":4468.65,"end":4468.89},{"text":"a","start":4468.97,"end":4469.01},{"text":"clear","start":4469.01,"end":4469.29},{"text":"objective,","start":4469.29,"end":4469.85},{"text":"and","start":4470.41,"end":4470.69},{"text":"this","start":4470.69,"end":4470.89},{"text":"would","start":4470.89,"end":4471.09},{"text":"logically","start":4471.09,"end":4471.61},{"text":"be","start":4471.61,"end":4471.73},{"text":"Article","start":4471.73,"end":4472.09},{"text":"1.","start":4472.09,"end":4472.21}]},{"text":"An objectives clause would be an opportunity to explain exactly what this protocol is meant to achieve.","start":4472.21,"end":4477.69,"topics":[],"words":[{"text":"An","start":4472.21,"end":4472.41},{"text":"objectives","start":4472.65,"end":4473.29},{"text":"clause","start":4473.29,"end":4473.61},{"text":"would","start":4473.61,"end":4473.85},{"text":"be","start":4473.85,"end":4474.05},{"text":"an","start":4474.05,"end":4474.21},{"text":"opportunity","start":4474.21,"end":4474.81},{"text":"to","start":4474.81,"end":4474.93},{"text":"explain","start":4474.93,"end":4475.37},{"text":"exactly","start":4475.37,"end":4475.89},{"text":"what","start":4475.89,"end":4476.13},{"text":"this","start":4476.13,"end":4476.33},{"text":"protocol","start":4476.33,"end":4476.77},{"text":"is","start":4476.77,"end":4476.97},{"text":"meant","start":4476.97,"end":4477.17},{"text":"to","start":4477.17,"end":4477.25},{"text":"achieve.","start":4477.25,"end":4477.69}]},{"text":"and how it links to the Framework Convention.","start":4478.25,"end":4480.17,"topics":[],"words":[{"text":"and","start":4478.25,"end":4478.57},{"text":"how","start":4478.57,"end":4478.73},{"text":"it","start":4478.73,"end":4478.81},{"text":"links","start":4478.81,"end":4479.13},{"text":"to","start":4479.13,"end":4479.21},{"text":"the","start":4479.21,"end":4479.29},{"text":"Framework","start":4479.29,"end":4479.65},{"text":"Convention.","start":4479.65,"end":4480.17}]},{"text":"We believe that this protocol must be firmly anchored in the objectives and principles of the Framework Convention and help to operationalize Article 5 on fair allocation of taxing rights in relation to cross-border services.","start":4480.49,"end":4493.53,"topics":[{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. 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Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."}],"words":[{"text":"We","start":4480.49,"end":4480.69},{"text":"believe","start":4480.69,"end":4480.97},{"text":"that","start":4480.97,"end":4481.13},{"text":"this","start":4481.13,"end":4481.37},{"text":"protocol","start":4481.37,"end":4481.85},{"text":"must","start":4481.85,"end":4482.13},{"text":"be","start":4482.13,"end":4482.33},{"text":"firmly","start":4482.33,"end":4482.81},{"text":"anchored","start":4482.81,"end":4483.25},{"text":"in","start":4483.25,"end":4483.45},{"text":"the","start":4483.45,"end":4483.61},{"text":"objectives","start":4483.61,"end":4484.13},{"text":"and","start":4484.13,"end":4484.25},{"text":"principles","start":4484.25,"end":4484.81},{"text":"of","start":4484.81,"end":4484.89},{"text":"the","start":4484.89,"end":4485.05},{"text":"Framework","start":4485.05,"end":4485.37},{"text":"Convention","start":4485.37,"end":4485.93},{"text":"and","start":4486.25,"end":4486.49},{"text":"help","start":4486.49,"end":4486.73},{"text":"to","start":4486.81,"end":4487.05},{"text":"operationalize","start":4487.53,"end":4488.41},{"text":"Article","start":4488.41,"end":4488.81},{"text":"5","start":4488.81,"end":4489.21},{"text":"on","start":4489.53,"end":4489.69},{"text":"fair","start":4489.69,"end":4489.89},{"text":"allocation","start":4489.89,"end":4490.37},{"text":"of","start":4490.37,"end":4490.45},{"text":"taxing","start":4490.45,"end":4490.81},{"text":"rights","start":4490.81,"end":4491.21},{"text":"in","start":4491.21,"end":4491.45},{"text":"relation","start":4491.45,"end":4492.01},{"text":"to","start":4492.01,"end":4492.33},{"text":"cross-border","start":4492.33,"end":4492.97},{"text":"services.","start":4492.97,"end":4493.53}]},{"text":"Furthermore, the draft mentions the option of a preamble, which we also believe would be helpful to recap key elements of the Framework Convention and to explain the problems we want this protocol actually to resolve.","start":4494.17,"end":4508.17,"topics":[],"words":[{"text":"Furthermore,","start":4494.17,"end":4494.65},{"text":"the","start":4494.65,"end":4494.89},{"text":"draft","start":4494.89,"end":4495.21},{"text":"mentions","start":4495.21,"end":4495.69},{"text":"the","start":4495.69,"end":4495.81},{"text":"option","start":4495.81,"end":4496.13},{"text":"of","start":4496.13,"end":4496.29},{"text":"a","start":4496.29,"end":4496.33},{"text":"preamble,","start":4496.33,"end":4496.89},{"text":"which","start":4497.21,"end":4497.41},{"text":"we","start":4497.45,"end":4498.49},{"text":"also","start":4498.49,"end":4498.73},{"text":"believe","start":4498.73,"end":4499.05},{"text":"would","start":4499.05,"end":4499.21},{"text":"be","start":4499.21,"end":4499.33},{"text":"helpful","start":4499.33,"end":4499.93},{"text":"to","start":4500.25,"end":4500.41},{"text":"recap","start":4500.41,"end":4500.89},{"text":"key","start":4500.89,"end":4501.17},{"text":"elements","start":4501.17,"end":4501.61},{"text":"of","start":4501.61,"end":4501.69},{"text":"the","start":4501.69,"end":4501.77},{"text":"Framework","start":4501.77,"end":4502.13},{"text":"Convention","start":4502.13,"end":4502.81},{"text":"and","start":4503.05,"end":4503.25},{"text":"to","start":4503.25,"end":4503.33},{"text":"explain","start":4503.33,"end":4503.81},{"text":"the","start":4503.81,"end":4503.93},{"text":"problems","start":4503.93,"end":4504.49},{"text":"we","start":4504.49,"end":4504.89},{"text":"want","start":4504.89,"end":4505.29},{"text":"this","start":4506.37,"end":4506.81},{"text":"protocol","start":4506.81,"end":4507.33},{"text":"actually","start":4507.33,"end":4507.69},{"text":"to","start":4507.69,"end":4507.77},{"text":"resolve.","start":4507.77,"end":4508.17}]},{"text":"We note that the protocol resembles very much a traditional double taxation treaty more than a typical UN protocol.","start":4508.89,"end":4515.69,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}],"words":[{"text":"We","start":4508.89,"end":4509.05},{"text":"note","start":4509.05,"end":4509.29},{"text":"that","start":4509.29,"end":4509.45},{"text":"the","start":4509.45,"end":4509.61},{"text":"protocol","start":4509.61,"end":4510.09},{"text":"resembles","start":4510.09,"end":4511.05},{"text":"very","start":4511.13,"end":4511.45},{"text":"much","start":4511.45,"end":4511.73},{"text":"a","start":4511.73,"end":4511.77},{"text":"traditional","start":4511.77,"end":4512.25},{"text":"double","start":4512.25,"end":4512.57},{"text":"taxation","start":4512.57,"end":4513.21},{"text":"treaty","start":4513.21,"end":4513.77},{"text":"more","start":4514.01,"end":4514.25},{"text":"than","start":4514.25,"end":4514.45},{"text":"a","start":4514.45,"end":4514.49},{"text":"typical","start":4514.49,"end":4514.97},{"text":"UN","start":4514.97,"end":4515.21},{"text":"protocol.","start":4515.21,"end":4515.69}]},{"text":"The form of the protocol may seem inconsequential, but actually it has a significant bearing on the substance.","start":4516.17,"end":4522.17,"topics":[],"words":[{"text":"The","start":4516.17,"end":4516.29},{"text":"form","start":4516.33,"end":4516.65},{"text":"of","start":4516.65,"end":4516.73},{"text":"the","start":4516.73,"end":4516.85},{"text":"protocol","start":4516.85,"end":4517.37},{"text":"may","start":4517.37,"end":4517.53},{"text":"seem","start":4517.53,"end":4518.09},{"text":"inconsequential,","start":4518.09,"end":4519.13},{"text":"but","start":4519.13,"end":4519.29},{"text":"actually","start":4519.29,"end":4519.65},{"text":"it","start":4519.65,"end":4519.73},{"text":"has","start":4519.73,"end":4519.89},{"text":"a","start":4519.89,"end":4519.93},{"text":"significant","start":4519.93,"end":4520.65},{"text":"bearing","start":4520.89,"end":4521.37},{"text":"on","start":4521.37,"end":4521.45},{"text":"the","start":4521.45,"end":4521.57},{"text":"substance.","start":4521.57,"end":4522.17}]},{"text":"For instance, One of the key areas of difference between a typical DTA and this protocol is that unlike the former, the protocol would lead to various competing or concurrent source taxing rights.","start":4522.57,"end":4536.01,"topics":[{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."}],"words":[{"text":"For","start":4522.57,"end":4522.73},{"text":"instance,","start":4522.73,"end":4523.37},{"text":"One","start":4524.29,"end":4524.41},{"text":"of","start":4524.41,"end":4524.49},{"text":"the","start":4524.49,"end":4524.65},{"text":"key","start":4524.65,"end":4524.89},{"text":"areas","start":4525.29,"end":4525.81},{"text":"of","start":4525.81,"end":4525.93},{"text":"difference","start":4525.93,"end":4526.33},{"text":"between","start":4526.33,"end":4526.65},{"text":"a","start":4526.65,"end":4526.69},{"text":"typical","start":4526.69,"end":4527.13},{"text":"DTA","start":4527.13,"end":4527.69},{"text":"and","start":4527.85,"end":4528.13},{"text":"this","start":4528.13,"end":4528.33},{"text":"protocol","start":4528.33,"end":4528.81},{"text":"is","start":4528.81,"end":4528.97},{"text":"that","start":4528.97,"end":4529.21},{"text":"unlike","start":4529.21,"end":4529.61},{"text":"the","start":4529.61,"end":4529.69},{"text":"former,","start":4529.69,"end":4530.33},{"text":"the","start":4530.49,"end":4530.65},{"text":"protocol","start":4530.65,"end":4531.21},{"text":"would","start":4531.21,"end":4531.37},{"text":"lead","start":4531.37,"end":4531.53},{"text":"to","start":4531.53,"end":4531.69},{"text":"various","start":4531.69,"end":4532.09},{"text":"competing","start":4532.09,"end":4532.65},{"text":"or","start":4532.65,"end":4532.89},{"text":"concurrent","start":4532.89,"end":4534.33},{"text":"source","start":4534.73,"end":4535.13},{"text":"taxing","start":4535.13,"end":4535.53},{"text":"rights.","start":4535.53,"end":4536.01}]},{"text":"We are concerned that the typical provisions of DTAs then become increasingly complex.","start":4536.33,"end":4541.29,"topics":[],"words":[{"text":"We","start":4536.33,"end":4536.49},{"text":"are","start":4536.49,"end":4536.57},{"text":"concerned","start":4536.57,"end":4537.09},{"text":"that","start":4537.09,"end":4537.21},{"text":"the","start":4537.21,"end":4537.37},{"text":"typical","start":4537.37,"end":4538.01},{"text":"provisions","start":4538.25,"end":4538.81},{"text":"of","start":4538.81,"end":4538.97},{"text":"DTAs","start":4538.97,"end":4539.53},{"text":"then","start":4539.53,"end":4539.69},{"text":"become","start":4539.69,"end":4540.09},{"text":"increasingly","start":4540.09,"end":4540.73},{"text":"complex.","start":4540.73,"end":4541.29}]},{"text":"We do not believe that source taxing rights on automated digital services should be pegged towards a consumer being resident in the source state.","start":4541.85,"end":4549.53,"topics":[{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."}],"words":[{"text":"We","start":4541.85,"end":4542.01},{"text":"do","start":4542.01,"end":4542.09},{"text":"not","start":4542.09,"end":4542.29},{"text":"believe","start":4542.29,"end":4542.61},{"text":"that","start":4542.61,"end":4542.81},{"text":"source","start":4542.81,"end":4543.09},{"text":"taxing","start":4543.09,"end":4543.45},{"text":"rights","start":4543.45,"end":4543.93},{"text":"on","start":4543.93,"end":4544.09},{"text":"automated","start":4544.09,"end":4544.61},{"text":"digital","start":4544.61,"end":4545.05},{"text":"services","start":4545.05,"end":4545.69},{"text":"should","start":4545.93,"end":4546.21},{"text":"be","start":4546.21,"end":4546.33},{"text":"pegged","start":4546.33,"end":4546.69},{"text":"towards","start":4546.69,"end":4547.13},{"text":"a","start":4547.13,"end":4547.17},{"text":"consumer","start":4547.17,"end":4547.77},{"text":"being","start":4547.77,"end":4548.01},{"text":"resident","start":4548.01,"end":4548.57},{"text":"in","start":4548.57,"end":4548.73},{"text":"the","start":4548.73,"end":4548.85},{"text":"source","start":4548.85,"end":4549.17},{"text":"state.","start":4549.17,"end":4549.53}]},{"text":"We believe that residence is only relevant in relation to identifying the state that shall provide double tax relief.","start":4549.93,"end":4556.69,"topics":[{"key":"double-taxation-relief","label":"Double Taxation Relief","description":"Multiple speakers stressed that any new source-country taxing rights must be matched by effective relief from double taxation. They highlighted the need for clear crediting rules, coordination with Articles 9 to 11, and workable dispute resolution mechanisms."}],"words":[{"text":"We","start":4549.93,"end":4550.05},{"text":"believe","start":4550.05,"end":4550.37},{"text":"that","start":4550.37,"end":4550.73},{"text":"residence","start":4551.17,"end":4551.57},{"text":"is","start":4551.57,"end":4551.77},{"text":"only","start":4551.77,"end":4551.97},{"text":"relevant","start":4551.97,"end":4552.53},{"text":"in","start":4552.53,"end":4552.69},{"text":"relation","start":4552.69,"end":4553.33},{"text":"to","start":4553.57,"end":4553.73},{"text":"identifying","start":4553.73,"end":4554.45},{"text":"the","start":4554.45,"end":4554.57},{"text":"state","start":4554.57,"end":4554.93},{"text":"that","start":4554.93,"end":4555.17},{"text":"shall","start":4555.17,"end":4555.33},{"text":"provide","start":4555.33,"end":4555.85},{"text":"double","start":4555.85,"end":4556.13},{"text":"tax","start":4556.13,"end":4556.37},{"text":"relief.","start":4556.37,"end":4556.69}]},{"text":"Additionally, Article 1 and many other articles in the draft mention the term persons.","start":4557.33,"end":4562.21,"topics":[],"words":[{"text":"Additionally,","start":4557.33,"end":4558.05},{"text":"Article","start":4558.05,"end":4558.53},{"text":"1","start":4558.53,"end":4558.93},{"text":"and","start":4559.21,"end":4559.37},{"text":"many","start":4559.37,"end":4559.61},{"text":"other","start":4559.61,"end":4559.89},{"text":"articles","start":4559.89,"end":4560.29},{"text":"in","start":4560.29,"end":4560.41},{"text":"the","start":4560.41,"end":4560.49},{"text":"draft","start":4560.49,"end":4560.81},{"text":"mention","start":4560.81,"end":4561.21},{"text":"the","start":4561.21,"end":4561.29},{"text":"term","start":4561.29,"end":4561.57},{"text":"persons.","start":4561.57,"end":4562.21}]},{"text":"From the context, we get the understanding that we are in fact talking about legal persons, and we would suggest making a clear distinction between legal persons, meaning companies and similar, and national persons, meaning individuals, because their tax treatment will vary.","start":4562.53,"end":4577.17,"topics":[],"words":[{"text":"From","start":4562.53,"end":4562.73},{"text":"the","start":4562.73,"end":4562.85},{"text":"context,","start":4562.85,"end":4563.29},{"text":"we","start":4563.29,"end":4563.41},{"text":"get","start":4563.49,"end":4563.69},{"text":"the","start":4563.69,"end":4563.77},{"text":"understanding","start":4563.77,"end":4564.45},{"text":"that","start":4564.45,"end":4564.69},{"text":"we","start":4564.69,"end":4564.77},{"text":"are","start":4564.77,"end":4564.85},{"text":"in","start":4564.85,"end":4564.93},{"text":"fact","start":4564.93,"end":4565.21},{"text":"talking","start":4565.21,"end":4565.57},{"text":"about","start":4565.57,"end":4565.89},{"text":"legal","start":4565.89,"end":4566.17},{"text":"persons,","start":4566.17,"end":4566.69},{"text":"and","start":4567.17,"end":4567.33},{"text":"we","start":4567.33,"end":4567.49},{"text":"would","start":4567.49,"end":4567.65},{"text":"suggest","start":4567.65,"end":4568.05},{"text":"making","start":4568.05,"end":4568.37},{"text":"a","start":4568.37,"end":4568.45},{"text":"clear","start":4568.45,"end":4568.77},{"text":"distinction","start":4568.77,"end":4569.41},{"text":"between","start":4569.41,"end":4569.81},{"text":"legal","start":4569.81,"end":4570.05},{"text":"persons,","start":4570.05,"end":4570.69},{"text":"meaning","start":4571.09,"end":4571.49},{"text":"companies","start":4571.49,"end":4572.09},{"text":"and","start":4572.09,"end":4572.21},{"text":"similar,","start":4572.21,"end":4572.77},{"text":"and","start":4573.05,"end":4573.21},{"text":"national","start":4573.21,"end":4573.57},{"text":"persons,","start":4573.57,"end":4574.05},{"text":"meaning","start":4574.05,"end":4574.37},{"text":"individuals,","start":4574.37,"end":4575.09},{"text":"because","start":4575.41,"end":4575.69},{"text":"their","start":4575.69,"end":4575.81},{"text":"tax","start":4575.81,"end":4576.09},{"text":"treatment","start":4576.09,"end":4576.57},{"text":"will","start":4576.57,"end":4576.77},{"text":"vary.","start":4576.77,"end":4577.17}]},{"text":"We believe this protocol must establish a genuinely universal and multilateral basis for fair allocation of taxing rights over cross-border services.","start":4578.33,"end":4587.69,"topics":[{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."}],"words":[{"text":"We","start":4578.33,"end":4578.41},{"text":"believe","start":4578.41,"end":4578.81},{"text":"this","start":4578.81,"end":4578.97},{"text":"protocol","start":4578.97,"end":4579.37},{"text":"must","start":4579.37,"end":4579.61},{"text":"establish","start":4579.61,"end":4580.01},{"text":"a","start":4580.01,"end":4580.05},{"text":"genuinely","start":4580.05,"end":4580.65},{"text":"universal","start":4580.97,"end":4582.17},{"text":"and","start":4582.17,"end":4582.33},{"text":"multilateral","start":4582.33,"end":4582.97},{"text":"basis","start":4582.97,"end":4583.45},{"text":"for","start":4583.77,"end":4584.05},{"text":"fair","start":4584.05,"end":4584.21},{"text":"allocation","start":4584.21,"end":4584.73},{"text":"of","start":4584.73,"end":4584.89},{"text":"taxing","start":4584.89,"end":4585.29},{"text":"rights","start":4585.29,"end":4585.69},{"text":"over","start":4585.69,"end":4586.01},{"text":"cross-border","start":4586.49,"end":4587.13},{"text":"services.","start":4587.13,"end":4587.69}]},{"text":"Yet we are concerned to see in the draft the re-emergence of precisely the elements that the convention should allow us to move beyond.","start":4588.09,"end":4595.69,"topics":[],"words":[{"text":"Yet","start":4588.09,"end":4588.33},{"text":"we","start":4588.33,"end":4588.49},{"text":"are","start":4588.49,"end":4588.57},{"text":"concerned","start":4588.57,"end":4589.09},{"text":"to","start":4589.09,"end":4589.17},{"text":"see","start":4589.17,"end":4589.61},{"text":"in","start":4589.61,"end":4589.77},{"text":"the","start":4589.77,"end":4589.85},{"text":"draft","start":4589.85,"end":4590.33},{"text":"the","start":4590.33,"end":4590.49},{"text":"re-emergence","start":4590.49,"end":4591.45},{"text":"of","start":4591.69,"end":4591.85},{"text":"precisely","start":4591.85,"end":4592.53},{"text":"the","start":4592.53,"end":4592.61},{"text":"elements","start":4592.61,"end":4593.05},{"text":"that","start":4593.05,"end":4593.33},{"text":"the","start":4593.33,"end":4593.41},{"text":"convention","start":4593.41,"end":4594.01},{"text":"should","start":4594.01,"end":4594.33},{"text":"allow","start":4594.41,"end":4594.73},{"text":"us","start":4594.73,"end":4594.89},{"text":"to","start":4594.89,"end":4595.05},{"text":"move","start":4595.05,"end":4595.29},{"text":"beyond.","start":4595.29,"end":4595.69}]},{"text":"That is the centrality of physical presence, the transfer pricing system, and an excessive dependence on existing unfair bilateral tax treaties.","start":4596.01,"end":4604.01,"topics":[{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. 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Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."}],"words":[{"text":"This","start":7629.01,"end":7629.33},{"text":"protocol","start":7629.33,"end":7630.13},{"text":"allocates","start":7630.21,"end":7630.77},{"text":"tax","start":7630.77,"end":7631.09},{"text":"rights","start":7631.09,"end":7631.49},{"text":"between","start":7631.49,"end":7631.89},{"text":"states.","start":7631.89,"end":7632.53}]},{"text":"Rights on one side must match obligation on the other.","start":7633.09,"end":7636.53,"topics":[{"key":"double-taxation-relief","label":"Double Taxation Relief","description":"Multiple speakers stressed that any new source-country taxing rights must be matched by effective relief from double taxation. 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Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"But","start":8129.69,"end":8129.97},{"text":"the","start":8129.97,"end":8130.05},{"text":"reality","start":8130.05,"end":8130.77},{"text":"today","start":8130.77,"end":8131.21},{"text":"is","start":8131.21,"end":8131.77},{"text":"54-22.","start":8131.85,"end":8133.85}]},{"text":"So, you know, when we need to have, when we're here, we need to have the reality as well.","start":8135.69,"end":8142.41,"topics":[],"words":[{"text":"So,","start":8135.69,"end":8136.33},{"text":"you","start":8137.13,"end":8137.29},{"text":"know,","start":8137.29,"end":8137.49},{"text":"when","start":8137.49,"end":8137.85},{"text":"we","start":8137.93,"end":8138.33},{"text":"need","start":8138.33,"end":8138.57},{"text":"to","start":8138.57,"end":8138.65},{"text":"have,","start":8138.65,"end":8139.13},{"text":"when","start":8139.53,"end":8139.85},{"text":"we're","start":8140.17,"end":8140.57},{"text":"here,","start":8140.57,"end":8140.89},{"text":"we","start":8140.89,"end":8141.01},{"text":"need","start":8141.01,"end":8141.21},{"text":"to","start":8141.21,"end":8141.29},{"text":"have","start":8141.29,"end":8141.49},{"text":"the","start":8141.49,"end":8141.57},{"text":"reality","start":8141.57,"end":8142.13},{"text":"as","start":8142.13,"end":8142.25},{"text":"well.","start":8142.25,"end":8142.41}]},{"text":"It's just not wishful thinking.","start":8142.41,"end":8144.33,"topics":[],"words":[{"text":"It's","start":8142.41,"end":8142.65},{"text":"just","start":8142.65,"end":8142.93},{"text":"not","start":8142.93,"end":8143.21},{"text":"wishful","start":8143.29,"end":8143.85},{"text":"thinking.","start":8143.85,"end":8144.33}]},{"text":"When we talk about gross and net as well, it'd be very interesting to hear that It's just the gross that you are not happy with.","start":8146.21,"end":8156.33,"topics":[{"key":"gross-vs-net-taxation","label":"Gross vs. Net Taxation","description":"Speakers debated whether cross-border services should be taxed through gross-basis withholding taxes or through approaches linked to net income or profit allocation. 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if you are, you should say that as well.","start":8187.57,"end":8190.05,"topics":[],"words":[{"text":"Because","start":8187.57,"end":8187.89},{"text":"if","start":8187.89,"end":8188.01},{"text":"you","start":8188.01,"end":8188.13},{"text":"are,","start":8188.13,"end":8188.37},{"text":"you","start":8188.37,"end":8188.53},{"text":"should","start":8188.53,"end":8188.77},{"text":"say","start":8189.01,"end":8189.33},{"text":"that","start":8189.33,"end":8189.57},{"text":"as","start":8189.61,"end":8189.73},{"text":"well.","start":8189.73,"end":8190.05}]},{"text":"So with those sort of a little bit of input to keep on the discussion going and move forward in a consensus way, I give the floor to stakeholder one, which is a long name, let me just read it 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called Independent Expert on the Promotion of Democratic and Equitable International Order.","start":8207.89,"end":8214.69,"topics":[],"words":[{"text":"It's","start":8207.89,"end":8208.13},{"text":"called","start":8208.13,"end":8208.53},{"text":"Independent","start":8208.53,"end":8209.25},{"text":"Expert","start":8209.25,"end":8209.81},{"text":"on","start":8209.81,"end":8209.97},{"text":"the","start":8209.97,"end":8210.05},{"text":"Promotion","start":8210.05,"end":8210.73},{"text":"of","start":8210.73,"end":8210.81},{"text":"Democratic","start":8210.81,"end":8211.73},{"text":"and","start":8212.21,"end":8212.49},{"text":"Equitable","start":8212.49,"end":8213.17},{"text":"International","start":8213.17,"end":8214.05},{"text":"Order.","start":8214.05,"end":8214.69}]},{"text":"Please go 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intervene.","start":8218.93,"end":8222.37,"topics":[],"words":[{"text":"Many","start":8218.93,"end":8219.25},{"text":"thanks","start":8219.25,"end":8219.65},{"text":"for","start":8219.73,"end":8219.97},{"text":"giving","start":8219.97,"end":8220.17},{"text":"me","start":8220.17,"end":8220.29},{"text":"the","start":8220.29,"end":8220.41},{"text":"opportunity","start":8220.41,"end":8221.09},{"text":"to","start":8221.57,"end":8221.73},{"text":"intervene.","start":8221.73,"end":8222.37}]},{"text":"I'm going to give you some general comments from the vantage point of my mandate, part of the special procedures of the United 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name is George Katrougalos, and I am the independent expert for the promotion of a democratic international 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of the protocol today reflect a more general, I would say, central issue regarding the role of the 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of how transformative or revolutionary it will be in its substantive content, I believe that the most fundamental achievement would be to establish a unified global architecture for international tax cooperation.","start":8255.97,"end":8272.61,"topics":[{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."}],"words":[{"text":"Regardless","start":8255.97,"end":8256.61},{"text":"of","start":8256.61,"end":8257.01},{"text":"how","start":8257.01,"end":8257.33},{"text":"transformative","start":8257.33,"end":8258.29},{"text":"or","start":8258.29,"end":8258.41},{"text":"revolutionary","start":8258.41,"end":8259.41},{"text":"it","start":8259.65,"end":8259.81},{"text":"will","start":8259.81,"end":8260.05},{"text":"be","start":8260.05,"end":8260.29},{"text":"in","start":8260.29,"end":8260.53},{"text":"its","start":8260.53,"end":8260.77},{"text":"substantive","start":8260.85,"end":8262.61},{"text":"content,","start":8262.61,"end":8263.17},{"text":"I","start":8263.89,"end":8264.05},{"text":"believe","start":8264.05,"end":8264.37},{"text":"that","start":8264.37,"end":8264.69},{"text":"the","start":8265.01,"end":8265.21},{"text":"most","start":8265.25,"end":8265.57},{"text":"fundamental","start":8265.57,"end":8266.21},{"text":"achievement","start":8266.21,"end":8266.85},{"text":"would","start":8267.25,"end":8267.45},{"text":"be","start":8267.45,"end":8267.57},{"text":"to","start":8267.57,"end":8267.73},{"text":"establish","start":8267.73,"end":8268.21},{"text":"a","start":8268.21,"end":8268.29},{"text":"unified","start":8268.29,"end":8269.01},{"text":"global","start":8269.01,"end":8269.61},{"text":"architecture","start":8269.61,"end":8270.37},{"text":"for","start":8270.61,"end":8270.85},{"text":"international","start":8270.85,"end":8271.57},{"text":"tax","start":8271.57,"end":8271.85},{"text":"cooperation.","start":8271.85,"end":8272.61}]},{"text":"In many aspects, there is now a two-tier system of global tax governance, in which not all jurisdictions participate on an equal footing.","start":8273.45,"end":8282.77,"topics":[{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."}],"words":[{"text":"In","start":8273.45,"end":8273.57},{"text":"many","start":8273.57,"end":8273.85},{"text":"aspects,","start":8273.85,"end":8274.37},{"text":"there","start":8274.77,"end":8275.09},{"text":"is","start":8275.09,"end":8275.25},{"text":"now","start":8275.25,"end":8275.49},{"text":"a","start":8275.49,"end":8275.57},{"text":"two-tier","start":8275.57,"end":8276.37},{"text":"system","start":8276.45,"end":8276.97},{"text":"of","start":8276.97,"end":8277.09},{"text":"global","start":8277.09,"end":8277.49},{"text":"tax","start":8277.49,"end":8277.97},{"text":"governance,","start":8278.13,"end":8278.85},{"text":"in","start":8279.33,"end":8279.53},{"text":"which","start":8279.53,"end":8279.81},{"text":"not","start":8279.81,"end":8280.09},{"text":"all","start":8280.09,"end":8280.21},{"text":"jurisdictions","start":8280.21,"end":8281.01},{"text":"participate","start":8281.01,"end":8281.81},{"text":"on","start":8281.81,"end":8281.93},{"text":"an","start":8281.93,"end":8282.05},{"text":"equal","start":8282.05,"end":8282.37},{"text":"footing.","start":8282.37,"end":8282.77}]},{"text":"And this is, of course, exacerbated after the January 26 OECD side-by-side package of the global minimum tax.","start":8283.49,"end":8291.41,"topics":[],"words":[{"text":"And","start":8283.49,"end":8283.65},{"text":"this","start":8283.65,"end":8283.81},{"text":"is,","start":8283.81,"end":8283.97},{"text":"of","start":8283.97,"end":8284.09},{"text":"course,","start":8284.09,"end":8284.37},{"text":"exacerbated","start":8284.37,"end":8285.25},{"text":"after","start":8285.25,"end":8285.57},{"text":"the","start":8285.57,"end":8285.69},{"text":"January","start":8285.69,"end":8286.21},{"text":"26","start":8286.21,"end":8286.93},{"text":"OECD","start":8287.41,"end":8288.05},{"text":"side-by-side","start":8288.05,"end":8289.09},{"text":"package","start":8289.25,"end":8289.81},{"text":"of","start":8290.09,"end":8290.21},{"text":"the","start":8290.21,"end":8290.29},{"text":"global","start":8290.29,"end":8290.65},{"text":"minimum","start":8290.65,"end":8291.09},{"text":"tax.","start":8291.09,"end":8291.41}]},{"text":"So, to respond to the discussion I have heard, flexibility is of course always necessary in all international treaties.","start":8293.25,"end":8300.85,"topics":[{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."}],"words":[{"text":"So,","start":8293.25,"end":8293.57},{"text":"to","start":8293.57,"end":8293.65},{"text":"respond","start":8294.29,"end":8294.81},{"text":"to","start":8294.81,"end":8294.97},{"text":"the","start":8294.97,"end":8295.13},{"text":"discussion","start":8295.13,"end":8295.81},{"text":"I","start":8295.81,"end":8295.89},{"text":"have","start":8295.89,"end":8296.13},{"text":"heard,","start":8296.13,"end":8296.45},{"text":"flexibility","start":8296.53,"end":8297.37},{"text":"is","start":8297.37,"end":8297.53},{"text":"of","start":8297.53,"end":8297.65},{"text":"course","start":8297.65,"end":8297.89},{"text":"always","start":8297.89,"end":8298.45},{"text":"necessary","start":8298.45,"end":8299.01},{"text":"in","start":8299.33,"end":8299.57},{"text":"all","start":8299.57,"end":8299.65},{"text":"international","start":8299.65,"end":8300.37},{"text":"treaties.","start":8300.37,"end":8300.85}]},{"text":"And legal certainty is of course a laudable goal.","start":8301.41,"end":8305.17,"topics":[{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. 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Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."}],"words":[{"text":"Jurisdictions","start":8354.01,"end":8354.73},{"text":"do","start":8354.73,"end":8354.85},{"text":"not","start":8354.85,"end":8355.13},{"text":"enter","start":8355.13,"end":8355.53},{"text":"the","start":8355.85,"end":8355.97},{"text":"international","start":8355.97,"end":8356.77},{"text":"tax","start":8356.77,"end":8357.01},{"text":"system","start":8357.01,"end":8357.37},{"text":"with","start":8357.37,"end":8357.53},{"text":"equal","start":8357.69,"end":8358.13},{"text":"economic","start":8358.13,"end":8358.57},{"text":"power,","start":8358.57,"end":8359.05},{"text":"equal","start":8359.53,"end":8359.93},{"text":"bargaining","start":8359.93,"end":8360.41},{"text":"capacity,","start":8360.41,"end":8361.13},{"text":"equal","start":8361.37,"end":8361.81},{"text":"administrative","start":8361.81,"end":8362.57},{"text":"resources,","start":8362.57,"end":8363.13},{"text":"or","start":8363.29,"end":8363.45},{"text":"equal","start":8363.45,"end":8363.77},{"text":"ability","start":8363.77,"end":8364.21},{"text":"to","start":8364.21,"end":8364.33},{"text":"influence","start":8364.33,"end":8364.77},{"text":"the","start":8364.77,"end":8364.89},{"text":"formulation","start":8364.89,"end":8365.61},{"text":"of","start":8365.77,"end":8365.93},{"text":"international","start":8365.93,"end":8366.49},{"text":"standards.","start":8366.49,"end":8367.13}]},{"text":"Therefore, the protocol is the necessary tool to give substance to Article 5 and its objective of achieving a fair allocation of taxing rights amongst jurisdictions.","start":8368.01,"end":8377.85,"topics":[{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. 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Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."}],"words":[{"text":"Therefore,","start":8368.01,"end":8368.41},{"text":"the","start":8368.41,"end":8368.57},{"text":"protocol","start":8368.57,"end":8369.05},{"text":"is","start":8369.05,"end":8369.21},{"text":"the","start":8369.29,"end":8369.57},{"text":"necessary","start":8369.57,"end":8370.33},{"text":"tool","start":8370.33,"end":8370.73},{"text":"to","start":8370.81,"end":8370.93},{"text":"give","start":8370.97,"end":8371.13},{"text":"substance","start":8371.13,"end":8371.61},{"text":"to","start":8371.61,"end":8371.73},{"text":"Article","start":8371.73,"end":8372.13},{"text":"5","start":8372.13,"end":8372.57},{"text":"and","start":8372.81,"end":8372.97},{"text":"its","start":8372.97,"end":8373.13},{"text":"objective","start":8373.13,"end":8373.69},{"text":"of","start":8373.69,"end":8373.77},{"text":"achieving","start":8373.77,"end":8374.25},{"text":"a","start":8374.25,"end":8374.33},{"text":"fair","start":8374.33,"end":8374.61},{"text":"allocation","start":8374.61,"end":8375.29},{"text":"of","start":8375.69,"end":8375.85},{"text":"taxing","start":8375.85,"end":8376.17},{"text":"rights","start":8376.17,"end":8376.57},{"text":"amongst","start":8376.57,"end":8376.97},{"text":"jurisdictions.","start":8377.05,"end":8377.85}]},{"text":"Fair allocation is not simply a technical question of tax jurisdiction.","start":8378.65,"end":8383.29,"topics":[{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. 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Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."}],"words":[{"text":"It","start":8384.01,"end":8384.17},{"text":"is","start":8384.17,"end":8384.33},{"text":"above","start":8384.33,"end":8384.65},{"text":"all","start":8384.65,"end":8384.89},{"text":"a","start":8384.97,"end":8385.05},{"text":"political","start":8385.05,"end":8386.01},{"text":"question","start":8386.09,"end":8386.61},{"text":"of","start":8386.61,"end":8386.81},{"text":"equity","start":8386.81,"end":8387.37},{"text":"and","start":8387.45,"end":8387.65},{"text":"democracy","start":8387.65,"end":8388.21},{"text":"in","start":8388.21,"end":8388.29},{"text":"the","start":8388.29,"end":8388.37},{"text":"international","start":8388.37,"end":8389.05},{"text":"economic","start":8389.05,"end":8389.61},{"text":"order.","start":8389.61,"end":8390.01}]},{"text":"Thank you, Madam 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inclusion of stakeholders in these meetings allows for a robust exchange of ideas, and we are hopeful that you also consider incorporating our feedback into the 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align with the interventions from ICC, ICC Mexico, ICC Italy, as well as the delegations from Belgium, the UK, Switzerland, and 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want to start by observing that we recognize that resource challenges that many tax administrations face and the desire to streamline tax 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business community shares the desire for clear administrative rules.","start":8458.17,"end":8462.65,"topics":[],"words":[{"text":"The","start":8458.17,"end":8458.29},{"text":"business","start":8458.29,"end":8458.61},{"text":"community","start":8458.61,"end":8458.97},{"text":"shares","start":8458.97,"end":8459.61},{"text":"the","start":8460.01,"end":8460.13},{"text":"desire","start":8460.13,"end":8460.73},{"text":"for","start":8460.73,"end":8460.97},{"text":"clear","start":8460.97,"end":8461.37},{"text":"administrative","start":8461.37,"end":8462.01},{"text":"rules.","start":8462.17,"end":8462.65}]},{"text":"in that spirit, though, we must share from our perspective the concept of gross basis taxation, which is described as simple, does not make it the right 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basis taxation is economically inefficient and according to multiple academic studies will inhibit growth and 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may lead to over taxation and double taxation, which will inevitably further reduce overall domestic 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as you just requested, Madam Co-chair, as to whether net basis taxation would be appropriate here, we would need to see proposed language before providing any comments 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being said, should the framework adopt these taxes, it must ensure that any tax, including withholding taxes, would be credible in the country of residents as to mitigate double 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champion flexible tax mechanisms.","start":8542.53,"end":8544.61,"topics":[],"words":[{"text":"to","start":8542.53,"end":8542.61},{"text":"champion","start":8542.61,"end":8543.17},{"text":"flexible","start":8543.17,"end":8543.57},{"text":"tax","start":8543.57,"end":8543.89},{"text":"mechanisms.","start":8543.89,"end":8544.61}]},{"text":"However, we caution that flexible provisions that morph over time may erode certainty for both tax administrations and 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layering on cross-border services withholding tax will lead to double taxation, which does not improve investment or the fiscal health of the 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want to close on a positive note, though.","start":8560.05,"end":8561.49,"topics":[],"words":[{"text":"I","start":8560.05,"end":8560.13},{"text":"want","start":8560.13,"end":8560.33},{"text":"to","start":8560.33,"end":8560.41},{"text":"close","start":8560.41,"end":8560.57},{"text":"on","start":8560.57,"end":8560.65},{"text":"a","start":8560.65,"end":8560.69},{"text":"positive","start":8560.69,"end":8561.09},{"text":"note,","start":8561.09,"end":8561.25},{"text":"though.","start":8561.25,"end":8561.49}]},{"text":"We do applaud the inclusion of timelines in the dispute resolution in Article 11 and urge that the protections from inappropriate denial of dispute settlement mechanisms, particularly MAP, be further included in the 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plan to submit written comments, and I thank you for your consideration, Madam Chair.","start":8574.37,"end":8577.49,"topics":[],"words":[{"text":"We","start":8574.37,"end":8574.49},{"text":"plan","start":8574.49,"end":8574.69},{"text":"to","start":8574.69,"end":8574.77},{"text":"submit","start":8574.77,"end":8575.09},{"text":"written","start":8575.09,"end":8575.49},{"text":"comments,","start":8575.49,"end":8575.85},{"text":"and","start":8575.85,"end":8575.97},{"text":"I","start":8575.97,"end":8576.01},{"text":"thank","start":8576.01,"end":8576.17},{"text":"you","start":8576.17,"end":8576.25},{"text":"for","start":8576.25,"end":8576.37},{"text":"your","start":8576.37,"end":8576.49},{"text":"consideration,","start":8576.49,"end":8577.01},{"text":"Madam","start":8577.01,"end":8577.21},{"text":"Chair.","start":8577.21,"end":8577.49}]}]}],"speaker":{"name":"Anne Gordon","affiliation":"NFTC","affiliation_full":"NFTC","group":null,"function":"Vice President of International Tax 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Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"our","start":8632.81,"end":8632.97},{"text":"terms","start":8632.97,"end":8633.41},{"text":"of","start":8633.41,"end":8633.53},{"text":"reference","start":8633.53,"end":8633.97},{"text":"talk","start":8633.97,"end":8634.17},{"text":"about","start":8634.17,"end":8634.57},{"text":"income","start":8634.57,"end":8635.05},{"text":"taxes","start":8635.05,"end":8635.85},{"text":"that","start":8636.73,"end":8637.05},{"text":"reflect","start":8637.29,"end":8637.89},{"text":"that","start":8638.01,"end":8638.73},{"text":"are","start":8638.73,"end":8638.89},{"text":"imposed","start":8638.89,"end":8639.73},{"text":"on","start":8639.73,"end":8639.93},{"text":"cross-border","start":8640.01,"end":8640.97},{"text":"transactions.","start":8640.97,"end":8642.09}]},{"text":"And I think that what we tried to do is to include all types of taxes when they act in the same way as an income tax.","start":8642.93,"end":8654.89,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. 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now got a hand up, so I got Burkina Faso.","start":8841.41,"end":8845.25,"topics":[],"words":[{"text":"I","start":8841.41,"end":8841.49},{"text":"now","start":8841.49,"end":8841.73},{"text":"got","start":8841.73,"end":8842.33},{"text":"a","start":8842.33,"end":8842.37},{"text":"hand","start":8842.37,"end":8842.77},{"text":"up,","start":8842.77,"end":8843.17},{"text":"so","start":8843.17,"end":8843.49},{"text":"I","start":8843.49,"end":8843.65},{"text":"got","start":8843.65,"end":8844.13},{"text":"Burkina","start":8844.13,"end":8844.77},{"text":"Faso.","start":8844.77,"end":8845.25}]},{"text":"Please go ahead.","start":8845.41,"end":8846.21,"topics":[],"words":[{"text":"Please","start":8845.41,"end":8845.65},{"text":"go","start":8845.65,"end":8845.81},{"text":"ahead.","start":8845.81,"end":8846.21}]},{"text":"And after that, Katie, if we can get the slide up with the questions on Article 3, I 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On article two, for us, taxes on income as gains, as added value for a business.","start":8956.49,"end":8975.33,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. 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Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."},{"key":"gross-vs-net-taxation","label":"Gross vs. Net Taxation","description":"Speakers debated whether cross-border services should be taxed through gross-basis withholding taxes or through approaches linked to net income or profit allocation. 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They highlighted the need for clear crediting rules, coordination with Articles 9 to 11, and workable dispute resolution mechanisms."},{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. 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Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"We'd","start":10116.89,"end":10117.21},{"text":"like","start":10117.21,"end":10117.33},{"text":"to","start":10117.33,"end":10118.01},{"text":"know","start":10118.01,"end":10118.13},{"text":"exactly","start":10118.13,"end":10118.57},{"text":"what","start":10118.57,"end":10118.89},{"text":"is","start":10118.89,"end":10119.05},{"text":"meant","start":10119.05,"end":10119.77},{"text":"by","start":10119.77,"end":10120.09},{"text":"that,","start":10120.09,"end":10120.45},{"text":"and","start":10120.45,"end":10120.81},{"text":"I","start":10121.13,"end":10121.29},{"text":"think","start":10121.29,"end":10121.53},{"text":"we","start":10121.53,"end":10121.65},{"text":"need","start":10121.65,"end":10121.81},{"text":"to","start":10121.81,"end":10121.89},{"text":"have","start":10121.89,"end":10122.09},{"text":"a","start":10122.09,"end":10122.17},{"text":"clear","start":10122.17,"end":10122.65},{"text":"definition","start":10122.89,"end":10123.77},{"text":"about","start":10123.77,"end":10124.01},{"text":"these","start":10124.01,"end":10124.33},{"text":"other","start":10124.33,"end":10124.57},{"text":"taxes","start":10124.57,"end":10125.21},{"text":"that","start":10125.21,"end":10125.45},{"text":"are","start":10125.45,"end":10125.89},{"text":"referred","start":10125.89,"end":10126.37},{"text":"to,","start":10126.37,"end":10126.73},{"text":"these","start":10127.85,"end":10128.09},{"text":"taxes","start":10128.09,"end":10128.53},{"text":"which","start":10128.53,"end":10128.73},{"text":"are","start":10128.73,"end":10128.81},{"text":"different","start":10128.81,"end":10129.53},{"text":"from","start":10129.53,"end":10130.01},{"text":"income","start":10130.17,"end":10130.57},{"text":"taxes.","start":10130.57,"end":10131.29}]},{"text":"We're also concerned by the reference to other taxes imposed on behalf of a contracting state having a similar economic effect.","start":10133.85,"end":10142.49,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. 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Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"This","start":10143.85,"end":10144.25},{"text":"is","start":10144.33,"end":10144.65},{"text":"too","start":10144.65,"end":10144.97},{"text":"generic","start":10144.97,"end":10145.57},{"text":"and","start":10145.57,"end":10145.81},{"text":"broad","start":10145.81,"end":10146.57},{"text":"in","start":10146.57,"end":10146.81},{"text":"our","start":10146.81,"end":10147.29},{"text":"eyes,","start":10147.85,"end":10148.49},{"text":"and","start":10148.49,"end":10148.65},{"text":"it","start":10148.65,"end":10148.73},{"text":"may","start":10148.73,"end":10149.21},{"text":"lead","start":10149.21,"end":10149.69},{"text":"to","start":10149.69,"end":10150.09},{"text":"different","start":10150.09,"end":10150.81},{"text":"interpretations","start":10150.81,"end":10151.77},{"text":"by","start":10151.77,"end":10152.01},{"text":"different","start":10152.01,"end":10152.49},{"text":"contracting","start":10152.49,"end":10153.21},{"text":"states.","start":10153.21,"end":10154.09}]},{"text":"We therefore are in favour of a clear scope of application and we think that the inclusion of concepts such as these may lead to a blurring of the ground and different interpretations from different states, which is not helpful.","start":10155.41,"end":10172.93,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. 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Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"The","start":10755.73,"end":10755.93},{"text":"African","start":10756.13,"end":10756.69},{"text":"group","start":10756.69,"end":10756.93},{"text":"wishes","start":10757.33,"end":10757.73},{"text":"to","start":10757.73,"end":10757.81},{"text":"thank","start":10757.81,"end":10758.13},{"text":"the","start":10758.13,"end":10758.21},{"text":"Co-Leads","start":10758.21,"end":10758.85},{"text":"for","start":10759.09,"end":10759.41},{"text":"the","start":10759.41,"end":10759.49},{"text":"draft","start":10759.49,"end":10759.89},{"text":"of","start":10759.89,"end":10760.13},{"text":"Article","start":10760.13,"end":10760.53},{"text":"2","start":10760.53,"end":10761.01},{"text":"concerning","start":10761.49,"end":10761.97},{"text":"the","start":10761.97,"end":10762.05},{"text":"taxes","start":10762.05,"end":10762.45},{"text":"covered.","start":10762.45,"end":10762.93}]},{"text":"The African Group notes the inclusion of clear provisions on the scope of taxation as essential to ensuring certainty and consistency in the application of the protocol.","start":10764.53,"end":10778.61,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. 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Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"We","start":10800.17,"end":10800.41},{"text":"are","start":10800.41,"end":10800.49},{"text":"therefore","start":10800.49,"end":10801.13},{"text":"concerned","start":10801.53,"end":10802.01},{"text":"with","start":10802.01,"end":10802.25},{"text":"the","start":10802.33,"end":10802.53},{"text":"inclusion","start":10802.53,"end":10803.13},{"text":"of","start":10803.21,"end":10803.45},{"text":"excise","start":10803.53,"end":10804.01},{"text":"taxes","start":10804.01,"end":10804.65},{"text":"within","start":10804.81,"end":10805.17},{"text":"the","start":10805.17,"end":10805.25},{"text":"scope","start":10805.25,"end":10805.69},{"text":"of","start":10805.69,"end":10805.85},{"text":"the","start":10805.85,"end":10805.93},{"text":"protocol","start":10805.93,"end":10806.49},{"text":"in","start":10806.65,"end":10806.81},{"text":"the","start":10806.81,"end":10806.93},{"text":"current","start":10806.93,"end":10807.33},{"text":"draft.","start":10807.33,"end":10807.77}]},{"text":"From our understanding, excise is not a tax on income, rather it is generally levied on production, sale or consumption.","start":10809.21,"end":10819.37,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"From","start":10809.21,"end":10809.69},{"text":"our","start":10809.69,"end":10809.77},{"text":"understanding,","start":10809.77,"end":10810.57},{"text":"excise","start":10810.97,"end":10811.41},{"text":"is","start":10811.45,"end":10811.69},{"text":"not","start":10811.69,"end":10812.09},{"text":"a","start":10812.09,"end":10812.13},{"text":"tax","start":10812.13,"end":10812.41},{"text":"on","start":10812.41,"end":10812.57},{"text":"income,","start":10812.57,"end":10813.05},{"text":"rather","start":10813.69,"end":10814.25},{"text":"it","start":10814.25,"end":10814.49},{"text":"is","start":10814.49,"end":10814.57},{"text":"generally","start":10814.57,"end":10815.01},{"text":"levied","start":10815.01,"end":10815.61},{"text":"on","start":10815.77,"end":10816.17},{"text":"production,","start":10816.33,"end":10817.13},{"text":"sale","start":10817.53,"end":10818.09},{"text":"or","start":10818.33,"end":10818.57},{"text":"consumption.","start":10818.57,"end":10819.37}]},{"text":"and it is generally recoverable from consumers of the product or service.","start":10820.09,"end":10825.37,"topics":[],"words":[{"text":"and","start":10820.09,"end":10820.45},{"text":"it","start":10820.45,"end":10820.65},{"text":"is","start":10820.65,"end":10820.97},{"text":"generally","start":10820.97,"end":10821.49},{"text":"recoverable","start":10821.49,"end":10822.33},{"text":"from","start":10822.33,"end":10822.65},{"text":"consumers","start":10822.65,"end":10823.45},{"text":"of","start":10823.45,"end":10823.61},{"text":"the","start":10823.61,"end":10823.69},{"text":"product","start":10823.69,"end":10824.25},{"text":"or","start":10824.57,"end":10824.77},{"text":"service.","start":10824.77,"end":10825.37}]},{"text":"In many jurisdictions, excise taxes are treated as indirect taxes, distinct from income taxation, and are not typically included within the scope of income taxes.","start":10827.05,"end":10839.69,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"In","start":10827.05,"end":10827.17},{"text":"many","start":10827.17,"end":10827.45},{"text":"jurisdictions,","start":10827.45,"end":10828.25},{"text":"excise","start":10828.49,"end":10828.85},{"text":"taxes","start":10828.85,"end":10829.21},{"text":"are","start":10829.21,"end":10829.29},{"text":"treated","start":10829.29,"end":10830.25},{"text":"as","start":10830.25,"end":10830.49},{"text":"indirect","start":10830.49,"end":10831.09},{"text":"taxes,","start":10831.09,"end":10831.61},{"text":"distinct","start":10831.93,"end":10832.53},{"text":"from","start":10832.53,"end":10832.81},{"text":"income","start":10832.81,"end":10833.13},{"text":"taxation,","start":10833.13,"end":10833.85},{"text":"and","start":10834.33,"end":10834.61},{"text":"are","start":10834.61,"end":10834.69},{"text":"not","start":10834.69,"end":10835.09},{"text":"typically","start":10835.09,"end":10835.57},{"text":"included","start":10835.57,"end":10836.17},{"text":"within","start":10836.25,"end":10836.53},{"text":"the","start":10836.53,"end":10836.61},{"text":"scope","start":10836.61,"end":10837.05},{"text":"of","start":10838.49,"end":10838.65},{"text":"income","start":10838.65,"end":10839.13},{"text":"taxes.","start":10839.13,"end":10839.69}]},{"text":"For this reason, we propose the removal of the reference to excise from Article 2 so as to maintain technical accuracy.","start":10840.81,"end":10848.73,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. 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Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"as","start":10878.97,"end":10879.21},{"text":"you","start":10879.21,"end":10879.29},{"text":"describe","start":10879.29,"end":10879.77},{"text":"with","start":10879.77,"end":10879.97},{"text":"similar","start":10880.41,"end":10880.81},{"text":"economic","start":10880.81,"end":10881.37},{"text":"effect,","start":10881.37,"end":10881.85},{"text":"irrespective","start":10882.81,"end":10883.69},{"text":"of","start":10883.77,"end":10884.01},{"text":"the","start":10884.09,"end":10884.41},{"text":"names","start":10884.49,"end":10885.05},{"text":"they","start":10885.21,"end":10885.37},{"text":"are","start":10885.37,"end":10885.45},{"text":"called.","start":10885.45,"end":10886.01}]},{"text":"So it is not important to us the name they are called, but the function not equivalent to income taxes or whether they have similar economic effects as income taxes.","start":10886.25,"end":10897.45,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"So","start":10886.25,"end":10886.57},{"text":"it","start":10887.77,"end":10887.97},{"text":"is","start":10887.97,"end":10888.09},{"text":"not","start":10888.09,"end":10888.21},{"text":"important","start":10888.21,"end":10888.77},{"text":"to","start":10888.77,"end":10888.85},{"text":"us","start":10888.85,"end":10889.05},{"text":"the","start":10889.05,"end":10889.17},{"text":"name","start":10889.17,"end":10889.37},{"text":"they","start":10889.37,"end":10889.53},{"text":"are","start":10889.53,"end":10889.61},{"text":"called,","start":10889.61,"end":10890.01},{"text":"but","start":10890.17,"end":10890.61},{"text":"the","start":10890.61,"end":10890.69},{"text":"function","start":10890.69,"end":10891.53},{"text":"not","start":10891.53,"end":10891.65},{"text":"equivalent","start":10891.65,"end":10892.41},{"text":"to","start":10892.73,"end":10892.89},{"text":"income","start":10892.89,"end":10893.29},{"text":"taxes","start":10893.29,"end":10893.77},{"text":"or","start":10893.77,"end":10893.89},{"text":"whether","start":10893.89,"end":10894.17},{"text":"they","start":10894.17,"end":10894.25},{"text":"have","start":10894.25,"end":10894.45},{"text":"similar","start":10894.45,"end":10894.77},{"text":"economic","start":10894.77,"end":10895.17},{"text":"effects","start":10895.17,"end":10895.61},{"text":"as","start":10896.01,"end":10896.25},{"text":"income","start":10896.25,"end":10896.73},{"text":"taxes.","start":10896.89,"end":10897.45}]},{"text":"We also wish to emphasize the scope of this protocol should be limited to income in relation to cross-border services and not all services.","start":10898.73,"end":10911.33,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic 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Madam Coleis, we believe that the drafting of article two can be improved upon and we will be suggesting a drafting in our written comments to particularly we think the having it as just one paragraph make it too, somehow 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Senegal.","start":11161.21,"end":11162.25,"topics":[],"words":[{"text":"I","start":11161.21,"end":11161.37},{"text":"have","start":11161.37,"end":11161.61},{"text":"Senegal.","start":11161.61,"end":11162.25}]},{"text":"Please go ahead, Senegal.","start":11162.41,"end":11163.61,"topics":[],"words":[{"text":"Please","start":11162.41,"end":11162.73},{"text":"go","start":11162.73,"end":11162.93},{"text":"ahead,","start":11162.93,"end":11163.21},{"text":"Senegal.","start":11163.21,"end":11163.61}]}]}],"speaker":{"name":"Kholoud","affiliation":null,"affiliation_full":null,"group":null,"function":"Co-Lead"}},{"statement_number":74,"start":11168.97,"pageUrl":"/en/asset/k1e/k1ebgs6m85?t=11169","paragraphs":[{"sentences":[{"text":"Thank you very much, Madam 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Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."}],"words":[{"text":"which","start":11596.93,"end":11597.29},{"text":"will","start":11597.29,"end":11597.49},{"text":"help","start":11597.49,"end":11597.77},{"text":"us","start":11597.77,"end":11597.93},{"text":"in","start":11597.93,"end":11598.09},{"text":"identifying","start":11598.09,"end":11598.89},{"text":"existing","start":11598.89,"end":11599.45},{"text":"taxes","start":11599.45,"end":11600.49},{"text":"by","start":11600.89,"end":11601.05},{"text":"help","start":11601.05,"end":11601.37},{"text":"of","start":11601.37,"end":11601.45},{"text":"state","start":11601.45,"end":11601.69},{"text":"parties","start":11601.69,"end":11602.25},{"text":"that","start":11602.73,"end":11603.01},{"text":"will","start":11603.01,"end":11603.13},{"text":"subscribe","start":11603.13,"end":11603.77},{"text":"to","start":11603.77,"end":11603.85},{"text":"that","start":11603.85,"end":11604.01},{"text":"particular","start":11604.01,"end":11604.57},{"text":"protocol","start":11604.81,"end":11605.33},{"text":"and","start":11605.33,"end":11605.49},{"text":"ensure","start":11605.49,"end":11605.85},{"text":"that","start":11605.85,"end":11606.01},{"text":"whatever","start":11606.01,"end":11606.53},{"text":"is","start":11606.53,"end":11606.73},{"text":"captured","start":11606.73,"end":11607.13},{"text":"is","start":11607.13,"end":11607.29},{"text":"within","start":11607.29,"end":11607.61},{"text":"scope.","start":11607.61,"end":11608.09}]},{"text":"Then the second one would be we develop a mechanism that will deal with the future taxes adopted by the state parties that are substantially similar to what we are talking about the covered taxes.","start":11608.49,"end":11621.37,"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. 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helpful.","start":11627.49,"end":11628.69,"topics":[],"words":[{"text":"That","start":11627.49,"end":11627.61},{"text":"was","start":11627.61,"end":11627.81},{"text":"very","start":11627.81,"end":11628.05},{"text":"helpful.","start":11628.05,"end":11628.69}]},{"text":"And I think we have to stop there.","start":11628.93,"end":11630.85,"topics":[],"words":[{"text":"And","start":11628.93,"end":11629.21},{"text":"I","start":11629.21,"end":11629.25},{"text":"think","start":11629.25,"end":11629.49},{"text":"we","start":11629.49,"end":11629.65},{"text":"have","start":11629.65,"end":11629.89},{"text":"to","start":11629.89,"end":11630.01},{"text":"stop","start":11630.01,"end":11630.45},{"text":"there.","start":11630.45,"end":11630.85}]},{"text":"We have to be very punctual in this 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floor.","start":11636.93,"end":11641.41,"topics":[],"words":[{"text":"So","start":11636.93,"end":11637.57},{"text":"I","start":11637.81,"end":11638.05},{"text":"have","start":11638.05,"end":11638.61},{"text":"two","start":11638.61,"end":11639.49},{"text":"requests","start":11639.73,"end":11640.93},{"text":"for","start":11640.93,"end":11641.05},{"text":"the","start":11641.05,"end":11641.17},{"text":"floor.","start":11641.17,"end":11641.41}]},{"text":"Tomorrow morning, we will start with the United Arab Emirates at 10:00.","start":11641.41,"end":11646.33,"topics":[],"words":[{"text":"Tomorrow","start":11641.41,"end":11641.81},{"text":"morning,","start":11641.81,"end":11642.13},{"text":"we","start":11642.13,"end":11642.29},{"text":"will","start":11642.29,"end":11642.45},{"text":"start","start":11642.45,"end":11642.85},{"text":"with","start":11642.85,"end":11643.01},{"text":"the","start":11643.01,"end":11643.09},{"text":"United","start":11643.09,"end":11643.57},{"text":"Arab","start":11643.57,"end":11643.89},{"text":"Emirates","start":11643.97,"end":11644.69},{"text":"at","start":11645.25,"end":11646.29},{"text":"10:00.","start":11646.29,"end":11646.33}]},{"text":"So have a nice evening, and I hope the courtship carries on, Marlene.","start":11646.37,"end":11650.85,"topics":[],"words":[{"text":"So","start":11646.37,"end":11646.61},{"text":"have","start":11646.61,"end":11646.85},{"text":"a","start":11646.85,"end":11646.89},{"text":"nice","start":11646.89,"end":11647.25},{"text":"evening,","start":11647.25,"end":11647.61},{"text":"and","start":11647.61,"end":11647.73},{"text":"I","start":11647.73,"end":11647.81},{"text":"hope","start":11647.81,"end":11648.13},{"text":"the","start":11648.13,"end":11648.21},{"text":"courtship","start":11648.21,"end":11649.01},{"text":"carries","start":11649.57,"end":11650.05},{"text":"on,","start":11650.05,"end":11650.21},{"text":"Marlene.","start":11650.21,"end":11650.85}]}]}],"speaker":{"name":"Kholoud","affiliation":null,"affiliation_full":null,"group":null,"function":"Co-Lead"}}],"topics":[{"key":"taxes-covered-scope","label":"Scope of Taxes Covered","description":"There was extensive discussion over which taxes should fall within the protocol, especially digital services taxes, equalization levies, and certain excise-type taxes. Many speakers called for a functional test based on whether a tax operates like an income tax on cross-border services, rather than relying only on domestic labels."},{"key":"anti-avoidance-rules","label":"Anti-Avoidance and Subject-to-Tax Rules","description":"Several interventions addressed safeguards against base erosion, low-tax outcomes, and protocol shopping. These included support for a subject-to-tax style rule, concern over treaty-shopping through conduit entities, and calls for clearer anti-abuse language."},{"key":"protocol-optionality","label":"Optionality of the Protocol","description":"A central debate concerned how much flexibility states should have under Protocol 1. Speakers differed on whether optionality should stop at the decision to join the protocol or also extend to article-by-article reservations, opt-ins, or opt-outs for particular treaties or provisions."},{"key":"source-taxing-rights","label":"Source-Country Taxing Rights","description":"Many interventions focused on strengthening source-country taxation of cross-border and automated digital services. Supporters argued that traditional tax rules based on physical presence no longer reflect how value is earned in digitalized economies and that Article 5 needs to be operationalized through stronger source taxing rights."},{"key":"gross-vs-net-taxation","label":"Gross vs. Net Taxation","description":"Speakers debated whether cross-border services should be taxed through gross-basis withholding taxes or through approaches linked to net income or profit allocation. Critics warned that gross taxation can overtax low-margin activities, while others defended it as simpler to administer and harder to avoid."},{"key":"development-and-equity","label":"Domestic Resource Mobilization and Equity","description":"A broad theme was the protocol's role in strengthening domestic resource mobilization and creating a fairer international allocation of taxing rights, especially for developing countries. Speakers linked the protocol to fiscal space, sustainable development, and a more inclusive and equitable global tax order."},{"key":"double-taxation-relief","label":"Double Taxation Relief","description":"Multiple speakers stressed that any new source-country taxing rights must be matched by effective relief from double taxation. They highlighted the need for clear crediting rules, coordination with Articles 9 to 11, and workable dispute resolution mechanisms."},{"key":"trade-investment-effects","label":"Trade and Investment Impacts","description":"Business groups and some states warned that new withholding taxes on cross-border services could discourage trade, reduce competitiveness, raise costs, and affect consumers, SMEs, and investment flows. Others argued that revenue gains and better public investment conditions should also be weighed in that assessment."},{"key":"protocol-treaty-interaction","label":"Interaction with Existing Tax Treaties","description":"Delegates repeatedly discussed how Protocol 1 should relate to existing bilateral tax treaties, including whether it should override them automatically, align them gradually, or apply only where states expressly choose. Legal certainty on hierarchy, compatibility, and implementation across prior agreements was a major concern."}]}}