Global Justice Program Director Thomas Pogge and other members of the International Bar Association’s Human Rights Institute (IBAHRI) Task Force on Illicit Financial Flows, Poverty and Human Rights presented a report on the links between tax abuse and human rights at the International Bar Association’s (IBA) annual conference on Wednesday, October 11 in Boston. The report concludes that state action that facilitates tax avoidance and evasion may amount to a violation of human rights.
According to the report, tax abuse—tax practices that go against the letter of intention of domestic or international tax law or policy—significantly contributes to human rights deprivations, particularly economic, social and cultural rights. The report provides a picture of tax abuse around the world and how it hinders the realization of human rights.
Using three case studies, the report distinguishes between legitimate tax planning and abusive tax practices. In an article posted on the IBA website, Thomas Pogge said “the fact that sophisticated tax planning strategies are technically legal is no longer a justification for their use. The impact of tax abuses, facilitated by secrecy jurisdictions, on global poverty is tremendous. The international community has not only a legal obligation but also a moral duty to ensure that states use the maximum resources available to fulfill the civil, political, economic and social rights of citizens.”
The report calls on stakeholders to take urgent action to curb tax abuse. While it calls upon states to implement higher standards for transparency in tax matters, it also asks businesses to assess the impact of their tax planning strategies upon the citizens in the countries where they are operating and lawyers to balance their commitment to serving their clients’ interest with the responsibility to uphold human rights.
The full report is now available on the IBA website.
To view a video of Thomas Pogge talking about the work of the IBAHRI Taskforce, click here.
By Mariana Ramírez Herrera and Rachel Payne