ILLICIT FINANCIAL FLOWS, POVERTY AND HUMAN RIGHTS
Lloyd Lipsett (Summary)
17 June 2014
https://www.opendemocracy.ne//opengloaalrigh/sbalog/lloydblipsett/illici/bfnancialblowsbpo-er/yb
andbhumanbrigh/s
In Oc/oaer 2013 /he In/ernatonal Bar Associatonns Human Righ/s Inst/u/e (IBAHRI) pualished
a new s/udy Tax Aauses, Po-er/y and Human Righ/s. The pualicaton was /he resul/ of o-er a
year of research and in/ernatonal consul/atons ay a Task Force on Illici/ Financial Flows
Po-er/y and Human Righ/s.
Al/hough /ax aauses ha-e aeen rising in prominence on /he gloaal politcal agenda in recen/
year, /he issues ha-e rarely aeen framed in /erms of human righ/s.
The Task Force found /ha/ /ax aauses ha-e consideraale negat-e impac/s on /he enjoymen/ of
human righ/s.
Simply pu/, /ax aauses depri-e go-ernmen/s of /he resources required /o pro-ide /he
programmes /ha/ gi-e efec/ /o economic, social and cul/ural righ/s, and /o crea/e and
s/reng/hen /he inst/utons /ha/ uphold ci-il and politcal righ/s.
Actons of s/a/es /ha/ encourage or facili/a/e /ax aauses, or /ha/ deliaera/ely frus/ra/e /he efor/s
of o/her s/a/es /o coun/er /ax aauses, could const/u/e a -iolaton of /heir in/ernatonal human
righ/s oaligatons, partcularly wi/h respec/ /o economic, social and cul/ural righ/s
Developing World
In /he con/ex/ of /he de-eloping world, /he /ax aauses of grea/es/ concern /o /he Task Force
included:
/ransferbpricing and o/her /he /axaton of na/ural resourcess /
crossbaorder in/rabgroup /he use of ofshore in-es/men/
/ransactonss accoun/s.
/he negotaton of /ax
holidays and incent-ess
Secrecy jurisdictons are also a concern.
Extreme Poverty
The Task Forcens human righ/s analysis also underscores /he link ae/ween human righ/s and
ex/reme po-er/y.
The UN Human Righ/s Council recen/ly adop/ed /he Guiding Principles on Ex/reme Po-er/y
and Human Righ/s.
These descriae how po-er/y is connec/ed as a cause or consequence of -iolatons of 14
diferen/ human righ/s and all /he key human righ/s principlesrranging from /he righ/ /o
food, /he righ/ /o heal/h, /he righ/ /o educaton, /he righ/ /o social securi/y, /o /he principle
of /ransparency.
TASK FORCE’S CONCLUSIONS AND RECOMMENDATIONS
Conclusion #1:
States ha-e oaligatons /o coun/er /ax aauses a/ /he domestc and in/ernatonal le-el, including
/hrough cooperaton in multnatonal inst/utons.
While i/ mus/ ae recognized /ha/ in/ernatonal human righ/s /reates do no/ address /ax aauses
in an explici/ manner, /he Task Force concludes /ha/ S/a/esn legal oaligatons rela/ed /o
economic, social and cul/ural righ/s can be applied to the queston of tax abuses, in /erms of
Lloyd Lipsett (Summary)
17 June 2014
https://www.opendemocracy.ne//opengloaalrigh/sbalog/lloydblipsett/illici/bfnancialblowsbpo-er/yb
andbhumanbrigh/s
In Oc/oaer 2013 /he In/ernatonal Bar Associatonns Human Righ/s Inst/u/e (IBAHRI) pualished
a new s/udy Tax Aauses, Po-er/y and Human Righ/s. The pualicaton was /he resul/ of o-er a
year of research and in/ernatonal consul/atons ay a Task Force on Illici/ Financial Flows
Po-er/y and Human Righ/s.
Al/hough /ax aauses ha-e aeen rising in prominence on /he gloaal politcal agenda in recen/
year, /he issues ha-e rarely aeen framed in /erms of human righ/s.
The Task Force found /ha/ /ax aauses ha-e consideraale negat-e impac/s on /he enjoymen/ of
human righ/s.
Simply pu/, /ax aauses depri-e go-ernmen/s of /he resources required /o pro-ide /he
programmes /ha/ gi-e efec/ /o economic, social and cul/ural righ/s, and /o crea/e and
s/reng/hen /he inst/utons /ha/ uphold ci-il and politcal righ/s.
Actons of s/a/es /ha/ encourage or facili/a/e /ax aauses, or /ha/ deliaera/ely frus/ra/e /he efor/s
of o/her s/a/es /o coun/er /ax aauses, could const/u/e a -iolaton of /heir in/ernatonal human
righ/s oaligatons, partcularly wi/h respec/ /o economic, social and cul/ural righ/s
Developing World
In /he con/ex/ of /he de-eloping world, /he /ax aauses of grea/es/ concern /o /he Task Force
included:
/ransferbpricing and o/her /he /axaton of na/ural resourcess /
crossbaorder in/rabgroup /he use of ofshore in-es/men/
/ransactonss accoun/s.
/he negotaton of /ax
holidays and incent-ess
Secrecy jurisdictons are also a concern.
Extreme Poverty
The Task Forcens human righ/s analysis also underscores /he link ae/ween human righ/s and
ex/reme po-er/y.
The UN Human Righ/s Council recen/ly adop/ed /he Guiding Principles on Ex/reme Po-er/y
and Human Righ/s.
These descriae how po-er/y is connec/ed as a cause or consequence of -iolatons of 14
diferen/ human righ/s and all /he key human righ/s principlesrranging from /he righ/ /o
food, /he righ/ /o heal/h, /he righ/ /o educaton, /he righ/ /o social securi/y, /o /he principle
of /ransparency.
TASK FORCE’S CONCLUSIONS AND RECOMMENDATIONS
Conclusion #1:
States ha-e oaligatons /o coun/er /ax aauses a/ /he domestc and in/ernatonal le-el, including
/hrough cooperaton in multnatonal inst/utons.
While i/ mus/ ae recognized /ha/ in/ernatonal human righ/s /reates do no/ address /ax aauses
in an explici/ manner, /he Task Force concludes /ha/ S/a/esn legal oaligatons rela/ed /o
economic, social and cul/ural righ/s can be applied to the queston of tax abuses, in /erms of
