26/10/22

INTERNATIONAL TAX: UN debt expert calls for UN convention to fight global tax avoidance and evasion.

As published on ohchr.org, Tuesday 25 October, 2022.

An international, democratic fiscal architecture is essential to address losses through illicit financial flows that reduce resources essential for social policies and public services, the UN’s independent debt expert said today, urging the world to begin negotiations on a UN convention to combat tax evasion.

In a report presented to the General Assembly, Attiya Waris, the UN independent expert on the effects of foreign debt, said it was estimated that hundreds of billions in revenues a year were lost due to cross-border corporate tax abuse and offshore tax abuse by wealthy individuals. The practice disproportionately affected developing countries, Waris said.

Waris’ report said States were facing high debt related distress, socioeconomic effects of the pandemic, inflation and climate change related emergencies among other crises. They need all available resources to address these crises and ensure the realisation of all human rights and particularly economic, social and cultural rights of those in situations of vulnerability, it said.

“States should promote a human rights-based economy, one that enhances the well-being and dignity of people, particularly those most marginalised. They should ensure that human rights obligations are at the centre of financial and fiscal decision making; and that principles of transparency, accountability, participation, social justice and fairness should guide the development of such a system,” Waris said.

“The shortcomings of the international and national tax systems require international cooperation and assistance. They cannot be addressed unilaterally. Thus, the creation of a multilateral, inclusive and democratic fiscal architecture is a crucial instrument for States to fight the challenges of global tax avoidance and evasion,” the expert said.

Waris called for the creation of an international authority, global tax body or world tax organisation with the objective of expanding its mandate to that of an international fiscal authority. The expert also urged the international community to launch negotiations for a United Nations led global tax convention.