UN Greenlights Work on Global Tax Treaty Amid Tensions With OECD

A United Nations committee approved a broad outline for a tax treaty Friday amid concern among developed nations about overlap with the OECD’s work on the global tax deal.

The 110-8 vote for the outline, with 44 abstentions, reflected continuing disagreement between developed and developing economies.

The document, called a terms of reference, would commit the UN to establishing a “system of governance for international tax cooperation” in a treaty that would include committing to fair allocation of taxing rights, addressing tax evasion and avoidance by high-net worth individuals, and tackling illicit financial flows.

The treaty, to be sent to ...