Voting in favor of international cooperation on tax issues helps promote human rights

2023-11-22 15:17:00
@Peter Dazeley/Getty Images

Responding to today’s United Nations General Assembly vote to internationalize cooperation on tax issues and work towards a tax treaty, Riva Jalipa, Amnesty International’s tax and human rights advisor, said:

“Hundreds of billions of dollars are lost each year to aggressive tax avoidance and evasion tactics by companies and individuals, hampering the ability of States to maximize their resources to meet their human rights obligations. and disproportionately harms the poorest and most vulnerable sectors of societies”.

“This vote is a critical step toward much-needed reform of the international tax system and paves the way for an urgently needed treaty to address the estimated US$500 billion in losses each year from tax abuses.

“Ultimately, a treaty should generate more resources for climate and development finance, for recovering and returning stolen goods, and for improving public institutions. Without it, tax avoidance and evasion will continue to have a corrosive effect on societies, eroding trust, undermining economic integrity, the rule of law and sustainable development.”

“Amnesty International reiterates its call for human rights to be placed at the heart of any international tax reform process and possible treaty. This will ensure that the current human rights obligations of States serve as a guide and basis for both the negotiations and the outcome.”

Additional information

The resolution approved by the States in the Second Committee of the General Assembly of the United Nations calls for a two-step process to negotiate a United Nations framework convention on international cooperation in tax matters. The resolution was proposed by Nigeria and had overwhelming support, despite opposition from some of the highest-income countries, such as the United States and the United Kingdom.

First, a committee will agree terms of reference to negotiate a convention, which will be finalized by fall 2024.

In the second phase, a treaty will be negotiated. The resolution agreed to take into account the needs, priorities and capacities of all countries, especially developing countries and countries in special situations. Although a tax agreement was reached in 2021 under the auspices of the Organization for Economic Cooperation and Development (OECD), neither the process nor the results have been sufficiently inclusive and fair, especially when it comes to countries that do not They are members of the OECD.