Thread by @AgnesCallamard

Check our latest report on #taxjustice: @Amnesty advocates the development of a UN Tax Convention that would establish a UN Tax Body to promote domestic resource mobilization through the effective and equitable governance of taxing rights across the globe amnesty.org/en/documents/i…

Taxation has been recognized by the UN as the most sustainable form of revenue generation, yet it is estimated that nearly US$500 billion is lost every year to tax abuse, at the expense of low-income countries who require it the most. amnesty.org/en/documents/i…

States should refrain from any actions, policies or measures that enable tax evasion and tax avoidance. This include offshore tax havens, engaging in harmful tax competition that encourages disproportionately low tax rates and incentives, and some double taxation treaties (DTTs)

Global tax rules have disproportionately disadvantaged lower-income countries and perpetuated inequalities, having been designed and agreed in non-inclusive way that benefit wealthy States. See for ex: the 2021 OECD Inclusive Framework on Base Erosion and Profit Shifting,

The proposed new global minimum corporate income tax rate of 15% may be seen as seeking to address tax avoidance by multinationals, in reality it was achieved at the expense of the taxing rights of low-income countries.

It is estimated that the G7 countries will take more than 60% of this additional tax generated. Further, the minimum 15% tax rate is seen as too low given that a number of countries in Latin America and Africa have recently had average corporate tax rates of 26% and 27%.

Equitably mobilizing resources through taxation is essential to ensuring that states are able to generate the maximum available resources possible to progressively realize human rights for all in line with their obligations

@Amnesty recommend the UN support the development of a UN Tax Convention establishing a UN tax body which would provide for a framework to:
(i) Comprehensively address the problem of both illicit financial flows (IFFs) and commercial practices such as aggressive tax avoidance

(ii) Progressively replace the current incoherent and highly complex network of bilateral and multilateral tax treaties and agreements and the failed transfer pricing system;
(iii) Create a global tax governance structure:
where all countries can participate on an equal footing

(iv) Link global tax governance with other relevant governmental commitments and obligations, including those relating to human rights, equality, the UN Sustainable Development Goals, debt restructuring and climate justice among others.