The ongoing negotiations over the U.N. Framework Convention on International Tax Cooperation are witnessing a significant debate led by South Centre Executive Director Carlos Correa, who advocates for collective economic security to shield countries from external pressures that hinder tax protocols. This proposal, which highlights tensions between tax sovereignty and international economic diplomacy, is particularly pertinent amid U.S. concerns over potentially discriminatory digital services taxes affecting American companies, illustrating a broader clash between protecting national economies and maintaining sovereign tax rights.
International tax negotiations usually argue over who gets to tax what. The latest fight asks a more uncomfortable question: What good is a new taxing right if exercising it can trigger economic punishment? That question now sits near the edge of negotiat...
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