Statement by Mr. NISHIGORI Naofumi, Counsellor, Permanent Mission of Japan to the United Nations, at the 78th Session of the Second Committee of the General Assembly, EOV after the vote on the adoption of the resolution 16 (h) titled "Promotion of inclusive and effective international tax cooperation at the United Nations"
2023/11/22
Mr. Chair,
Japan would like to begin by conveying our gratitude to Ms. Sherine El-Saeed from the Permanent Mission of Egypt for her dedication as a facilitator for this important and challenging resolution. We would also like to extend our gratitude to the UN Secretariat for their support throughout the process. In addition, we appreciate all the discussions on this resolution with our colleagues, including the African group.
Japan places significant emphasis on enhancing international tax cooperation, recognizing the crucial role of reforming the international taxation system as a fundamental step toward achieving the Sustainable Development Goals, particularly Goal 17. Japan has heightened both its human and capital contributions in this domain, working in coordination with relevant institutions, including the UN.
Mr. Chair,
Our commitment to tax cooperation notwithstanding, Japan is unfortunately unable to support this resolution at this moment, considering the following points:
First, since Member States received the Secretary-General’s report with three proposed options, all the Member States have gathered and engaged in all the discussions of this resolution, under the able leadership of the facilitator, in a sincere and constructive manner. Japan is no exception. We regard the UK proposal today in this line. However, despite all our best efforts for compromise, we the Member States unfortunately could not reach consensus, in particular, regarding our goal.
This result does not stem from a lack of dedication of Member States, but from the fact that further deliberations are required on the issue of the inclusiveness and effectiveness of international tax cooperation, considering its importance and complexity. We are at a crucial juncture. We would go further — achieve more meaningful and fruitful cooperation — if we could find a solid common understanding on which our further cooperation could be built.
Japan would like to make clear that we do not have any intention to deny the importance of the inclusiveness and effectiveness of international tax cooperation. But for the sake of achieving a better future, we must continue to have discussions regarding what common goal we are aiming for in this field.
Mr. Chair,
Taking this opportunity, Japan would also like to shed light on the importance of optimal collaboration among all the Member States and relevant institutions. As stated at the beginning, the SDGs face mounting obstacles and there is little room for wasting existing resources. Now is the time to promote transparent and fair development finance, in accordance with international rules through optimal collaboration, so as to achieve sustainable growth in developing countries.
In this regard, Japan would like to emphasize our concern that this current resolution is not based on an appropriate evaluation of the work of the OECD. The OECD has played a leading role in international tax co-operation and in setting global standards on issues such as tax transparency, transfer pricing and corporate tax avoidance. The Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum), comprising 168 members, and the Base Erosion and Profit Shifting Inclusive Framework (the Inclusive Framework), with 145 members, both encompass non-OECD members and non-state jurisdictions. Effective outcomes are being achieved in the OECD while increasing inclusiveness, as evidenced by the fact that two more countries joined the Inclusive Framework during the current month.
To foster inclusive and effective international cooperation, the best way is to seek optimal collaboration not through undermining nor competing, but respecting the achievements and knowledge accumulated by relevant institutions, including the UN and the OECD. Advancements in international tax cooperation can only be achieved through consensus. Japan anticipates the promotion of discussions that cultivate consensus among all member states and relevant institutions.
I thank you.
Japan would like to begin by conveying our gratitude to Ms. Sherine El-Saeed from the Permanent Mission of Egypt for her dedication as a facilitator for this important and challenging resolution. We would also like to extend our gratitude to the UN Secretariat for their support throughout the process. In addition, we appreciate all the discussions on this resolution with our colleagues, including the African group.
Japan places significant emphasis on enhancing international tax cooperation, recognizing the crucial role of reforming the international taxation system as a fundamental step toward achieving the Sustainable Development Goals, particularly Goal 17. Japan has heightened both its human and capital contributions in this domain, working in coordination with relevant institutions, including the UN.
Mr. Chair,
Our commitment to tax cooperation notwithstanding, Japan is unfortunately unable to support this resolution at this moment, considering the following points:
First, since Member States received the Secretary-General’s report with three proposed options, all the Member States have gathered and engaged in all the discussions of this resolution, under the able leadership of the facilitator, in a sincere and constructive manner. Japan is no exception. We regard the UK proposal today in this line. However, despite all our best efforts for compromise, we the Member States unfortunately could not reach consensus, in particular, regarding our goal.
This result does not stem from a lack of dedication of Member States, but from the fact that further deliberations are required on the issue of the inclusiveness and effectiveness of international tax cooperation, considering its importance and complexity. We are at a crucial juncture. We would go further — achieve more meaningful and fruitful cooperation — if we could find a solid common understanding on which our further cooperation could be built.
Japan would like to make clear that we do not have any intention to deny the importance of the inclusiveness and effectiveness of international tax cooperation. But for the sake of achieving a better future, we must continue to have discussions regarding what common goal we are aiming for in this field.
Mr. Chair,
Taking this opportunity, Japan would also like to shed light on the importance of optimal collaboration among all the Member States and relevant institutions. As stated at the beginning, the SDGs face mounting obstacles and there is little room for wasting existing resources. Now is the time to promote transparent and fair development finance, in accordance with international rules through optimal collaboration, so as to achieve sustainable growth in developing countries.
In this regard, Japan would like to emphasize our concern that this current resolution is not based on an appropriate evaluation of the work of the OECD. The OECD has played a leading role in international tax co-operation and in setting global standards on issues such as tax transparency, transfer pricing and corporate tax avoidance. The Global Forum on Transparency and Exchange of Information for Tax Purposes (the Global Forum), comprising 168 members, and the Base Erosion and Profit Shifting Inclusive Framework (the Inclusive Framework), with 145 members, both encompass non-OECD members and non-state jurisdictions. Effective outcomes are being achieved in the OECD while increasing inclusiveness, as evidenced by the fact that two more countries joined the Inclusive Framework during the current month.
To foster inclusive and effective international cooperation, the best way is to seek optimal collaboration not through undermining nor competing, but respecting the achievements and knowledge accumulated by relevant institutions, including the UN and the OECD. Advancements in international tax cooperation can only be achieved through consensus. Japan anticipates the promotion of discussions that cultivate consensus among all member states and relevant institutions.
I thank you.