Negotiations advance on the draft UN Framework Convention on International Tax Cooperation
Negotiations on a new UN Framework Convention on International Tax Cooperation continued in New York from 2-3 February, and are progressing further from 5-13 February, as the fourth session of the Intergovernmental Negotiating Committee (INC) moved further into drafting the text. A central focus was on Article 5, which deals with how taxing rights should be shared between countries. Many developing countries argued that multinational companies should be taxed based on factors such as where their customers are located, where economic value is created, and where digital activities take place, rather than relying mainly on physical presence. Several OECD countries and other like-minded jurisdictions cautioned that such approaches could undermine legal certainty, conflict with existing tax treaties, and increase the risk of double taxation. Delegates also discussed Article 6, which addresses the taxation of high-net worth individuals. Views differed on how ambitious this article should be, with debate over whether it should simply promote cooperation between tax authorities or establish stronger commitments. Further discussions revolved around Article 7 on tax-related illicit financial flows, including how broadly the concept should be defined and how far the convention should go in setting common standards. Talks on Article 8, covering harmful tax practices, highlighted a divide between calls for stronger commitments, including monitoring mechanisms and a future discussion on minimum tax rates, whilst other jurisdictions favoured a more general framework that aligns closely with existing OECD and EU rules, warning against duplication and overlap. Beyond the main articles, the session also advanced work on proposed protocols, including those related to the taxation of cross-border services and the resolution of tax disputes, although these remain at an early drafting stage.
European Commission launches public consultation on its evaluation of the Whistleblower Protection Directive
The European Commission launched on 28 January a public consultation as part of its evaluation of Directive (EU) 2019/1937 on the protection of persons who report breaches of Union law (so-called “Whistleblower Protection Directive”), as required under Article 27(3). The exercise will assess whether the Directive, in force since December 2019 and transposed by Member States by December 2021, is meeting its objectives of improving enforcement of EU law and providing effective protection of whistleblowers. The evaluation will examine effectiveness, efficiency, relevance, coherence and EU added value, including cooperation in cross-border cases and the potential need to extend the Directive’s scope. Evidence gathered will feed into a Commission evaluation report scheduled for completion in Q4 2026. The public consultation is open until 22 April, accessible via the Commissions’ Have your say portal.
OECD unveils updated MAP guidance with 2026 manual
The OECD has released the 2026 Edition of the Manual on Effective Mutual Agreement Procedures (MEMAP), providing updated guidance to enhance tax treaty dispute resolution processes. Developed by the Inclusive Framework on BEPS, the manual promotes greater consistency, timeliness, and effectiveness in mutual agreement procedures (MAP) under bilateral tax treaties for both OECD and non-OECD economies. It identifies best practices for competent authorities without imposing binding rules, aiming to improve tax certainty by facilitating the resolution of double taxation and transfer pricing disputes. The publication builds on prior versions, incorporating refinements to align with evolving international tax standards and the OECD Model Tax Convention. Tax administrations and taxpayers can access the online manual to better navigate MAP operations and obtain assistance from competent authorities. The OECD will host a webcast on the topic on 10 February (12:30 CET) with registration required.
EU Tax Observatory rebrands as International Tax Observatory
The EU Tax Observatory led by Gabriel Zucman, has announced that they have rebranded as the International Tax Observatory (ITO) on 5 February 2026. Hosted at the Paris School of Economics, the ITO aims to expand the EU Tax Observatory’s research on taxation, inequality, and multinational profit shifting to a global audience. It has been reported that the name change coincides with efforts to broaden its scope beyond Europe while maintaining focus on democratic tax debates and policymaker dialogue. The organisation continues providing tools like simulators for multinational tax deficits and country-by-country reporting explorers. Reportedly, this shift occurs amid criticisms of masking underlying changes in its operations or funding.
MEPs renew focus on digital taxation as budget talks intensify for 2028-2034
As the European Parliament’s Budgets Committee examined amendments to the draft Multiannual Financial Framework (MFF) for 2028–2034 this week, digital taxation and the need for new EU revenue sources moved to the forefront. Members from across the political spectrum identified the creation of sustainable “own resources” as key to financing emerging priorities, with several stressing the potential of taxing large technology companies and cross‑border digital activities. Greens and Socialists pushed for renewed efforts on an EU‑wide digital levy, aligned with global OECD talks but tailored to secure fair contributions from major US tech firms. Renew Europe’s Fabienne Keller and the Greens/EFA’s Rasmus Andresen both urged making the Carbon Border Adjustment Mechanism (CBAM) and customs duties on small parcels core elements of a diversified EU revenue strategy. The debate revealed broad agreement that Europe’s fiscal autonomy and digital capacity are linked, but political divisions remain over how to translate that into a binding and sustainable funding model ahead of plenary consideration in May.
AMLA outlines its strategic priorities for 2026-2028
The EU Anti-Money Laundering Authority (AMLA) released its first Single Programming Document (SPD) on 4 February 2026, outlining strategic priorities for 2026-2028 as it shifts from setup to full operations. Key focuses include delivering 24 of 40 regulatory mandates in 2026. This includes CDD rules, business risk assessments, STR guidelines, and sanctions tools, while advancing supervisory convergence, FIU cooperation, and ML/TF risk analysis under the new AML framework. From 2028, AMLA will directly supervise high-risk entities like crypto-asset service providers and high cash-turnover businesses, alongside peer reviews for indirect oversight. Chair Bruna Szego stressed its importance for clarity: "This sets our path to technical excellence and cooperation for obliged entities." Tax professionals should track dense Q2-Q4 2026 deadlines for RTS/ITS on monitoring and reporting, impacting compliance and advisory roles.
Global webinar on strengthening trust in tax systems
IFAC, the OECD, ACCA, and CA ANZ will host a global webinar on 11 February 2026 to launch Public Trust in Tax 2025: Asia and Beyond, the latest edition in the Public Trust in Tax series. The 90-minute event, scheduled from 09:00 to 10:30 CET, explores public perceptions of the fiscal contract, fairness, and trust in tax systems across 29 countries, focusing on Asia alongside Latin America, Western Europe, and the Pacific. Key findings will be presented by Jason Piper of ACCA, followed by a panel featuring representatives from Singapore's IRAS, the Asian Development Bank, and the OECD, moderated by CA ANZ's Ainslie van Onselen. The discussion aims to highlight trends in tax morale, taxpayer experience, and collaboration opportunities among governments, accountants, and institutions to enhance transparency and public service design. Prior registration is required to attend the event.
