On the final day of the Intergovernmental Negotiating Committee’s organizational session, delegates spent the morning in informal consultations trying to find a path to agreement on decision-making rules. This issue was the key sticking point during the four-day meeting, which saw comparatively speedy convergence around the other priority matter on the agenda: the topic of the second protocol. Delegates confirmed on Thursday that the second protocol would address “prevention and resolution of tax disputes.”
The debate over decision-making rules reflected divergent views and two proposals that were also discussed on Wednesday. Many countries, including the African Group, preferred simple majority voting. Others, including the European Union, underscored the importance of consensus decision making for international tax matters.
On Thursday afternoon, delegates were asked to consider the Chair’s proposal on “Decision-making on matters of substance.” The Chair’s draft called for the INC to “exhaust every effort in good faith to reach consensus on all matters of substance,” but decide that “when the Chair, upon the recommendation of the Bureau, informs the Committee that all efforts to reach consensus have been exhausted,” decisions on matters of substance relating to a protocol will be taken by a two-thirds majority. Furthermore, the proposal indicated that “if the question arises as to whether a matter is one of substance, it shall be decided by the Committee by a majority of members.”
Delegates voted an amendment to the Chair’s proposal presented by Czechia, France, Italy, Malta, and the UK, calling for the Committee to “conduct its work and take decisions by consensus” rather than providing for two-thirds majority for decisions on matters of substance related to a protocol. The amendment was defeated by a vote of 42 in favor, 98 against, and 10 abstentions. The Chair’s proposal was subsequently adopted as drafted.
Many delegations subsequently expressed objections to the decision, noting concerns that a fragmented tax architecture could result if there is not sufficient support for proposals and calling for consensus to remain the rule and not the exception in the negotiation process.
The session was closed at 4:40 pm EST.
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Michael Braun, Germany
Emil Ben Naftaly, Israel
Daniel Atwere Nuer, Ghana
Cezary Krysiak, Poland
Vivek Ganesh, Singapore
Shari Spiegel, UN DESA