Developing Countries Cast Doubt on Benefits of Global Tax Treaty

A group of developing nations vented frustration Friday with the progress of the OECD-led global tax pact, urging its members not to ratify a multilateral treaty until other OECD countries, “especially” the US, choose to do so.

The South Centre, an intergovernmental organization led by and focused on issues important to developing countries, criticized part of the global tax pact known as Amount A, which details the reallocation of some of the largest multinational companies’ residual profits to market jurisdictions.

“Revenue estimates by various organisations all indicate that Amount A will yield a small amount of revenue,” South Centre said ...