INEQUALITIES

Center briefs top UN Women’s Rights Body on Tax, Tax Abuse and Gender Equality

On November 10, 2017, the Center for Human Rights and Global Justice, together with coalition partners the Center for Economic and Social Rights, the Tax Justice Network, IWRAW-AP, and Professor Kathleen Lahey of Queens University Faculty of Law, hosted a closed briefing on Tax Systems, Tax Abuse, and Women’s Rights in Geneva with the UN Committee on the Elimination of Discrimination Against Women.

This briefing came on the heels of the Paradise Papers leak, the latest in a long line of revelations of abusive tax practices through which wealthy individuals and corporations take advantage of a global network of financial secrecy jurisdictions to deprive states of public tax revenues essential to realizing human rights.

The briefing built on the CEDAW Committee’s pioneering work to hold states like Switzerland to account for the impacts of their tax and financial secrecy policies on women’s rights. Committee members were very engaged in the interactive discussion. The topics examined included how domestic and international tax policies and practices fundamentally affect women’s rights and substantive equality and implicate states’ treaty obligations under CEDAW; why the time is ripe to increase attention to the effects of systemic tax abuse on inequality; and how the CEDAW Committee can continue its leadership in this area.

Several of the organizations hosting this briefing co-authored a shadow report for the CEDAW Committee in 2016 on Switzerland’s financial secrecy policies and a similar submission to the UN Committee on Economic, Social and Cultural Rights concerning the United Kingdom’s tax policies and practices.

This post was originally published as a press release on November 10, 2017.

INEQUALITIES

CEDAW calls Switzerland to account for the effects of its tax policies on women’s rights 

[The week of November 20, 2016], the UN’s top women’s rights body, the Committee on the Elimination of Discrimination against Women, made tax justice a women’s rights issue in its recommendations to renowned financial secrecy jurisdiction, Switzerland. Prompted by a coalition report and factsheet co-authored by the Global Justice Clinic, the Center for Economic and Social Rights, and partner organizations, the Committee called upon Switzerland to assess the impacts of its financial secrecy and corporate tax policies on women’s rights abroad.

In its final report on Switzerland’s compliance with the CEDAW Convention, the Committee expressed concern about how the State’s current laws and policies on banking secrecy and corporate taxation adversely affect the ability of other governments, especially in developing countries, to mobilize the maximum available resources for the fulfillment of women’s rights. Switzerland, which ranks as the number one country for financial secrecy, plays an outsized role in preventing other governments from upholding their obligations under CEDAW and other human rights treaties. A coalition of human rights and tax justice advocates that brought this issue before the Committee—comprised of Alliance Sud, the Berne Declaration, the Center for Economic and Social Rights, the Global Justice Clinic, and the Tax Justice Network—warmly welcomed the Committee’s recommendation that Switzerland “undertake independent, participatory and periodic impact assessments of the extraterritorial effects of its financial secrecy and corporate tax policies on women’s rights and substantive equality.” Global Justice Clinic student, Lauren Flanagan, stated that “the Committee’s engagement with these issues represents an essential step toward ensuring that States are held accountable for the effects of their taxation policies on human rights beyond their own borders.”

As explained in the coalition factsheet and submission, taxation remains the most significant and reliable source of public revenue for States around the world. Each year, however, governments lose hundreds of billions of dollars in revenue as a result of corporations and wealthy individuals shifting their profits and assets to financial secrecy jurisdictions where they are taxed at low rates or not at all. Substantial revenue losses lead to budget shortfalls, which impede government efforts to fulfill human rights. When a state is unable to close the budget deficit, it is often women who feel the pinch the most. Cuts to essential services like healthcare and education exacerbate the feminization of poverty and further confine women to caregiving roles—phenomena which represent a major roadblock to achieving substantive equality.

CEDAW’s recommendations to Switzerland come at a time when there is growing momentum across human rights institutions and within civil society movements to address tax as a human rights issue. In June 2016 the UN Committee that presides over economic, social and cultural rights called on the UK to address the human rights impacts of its financial secrecy policies, while in May 2016 the UN Committee on children’s rights recognized the importance of combating tax evasion as a way to mobilize resources for fulfilling children’s rights.  These developments also coincide with the growth of activism in opposition to abusive tax practices. A recent sit-in at a branch of BNP Paribas in protest against the bank’s involvement in offshore secrecy accounts held by French elites highlighted citizen concern over the social costs of enabling corporations and wealthy individuals to avoid paying their fair share.

Co-instructor of the Global Justice Clinic, Nikki Reisch, applauded “the emerging consensus that abusive tax practices and policies must be met with a zero-tolerance policy in order to truly vindicate human rights and to meet the targets laid down in the Sustainable Development Goals.”  She added that “the Clinic recognizes the importance for both women’s rights and human rights more broadly, of continuing to build international pressure to combat tax abuses, and therefore remains committed to supporting research and advocacy efforts in the area of tax and human rights.”

This post was originally published as a press release on November 28, 2016. 

INEQUALITIES

GJC Applauds UN Committee for calling UK to account over impact of Unjust Tax Laws

Following a joint report issued by the Global Justice Clinic (GJC) , the Center for Economic and Social Rights (CESR), and the Tax Justice Network (TJN), the UN Committee on Economic, Social and Cultural Rights has called on the single largest financial secrecy jurisdiction in the world—the United Kingdom and its Overseas Territories and Crown Dependencies—to account for the human rights impacts of its unjust tax policies, both at home and abroad.

The Committee, which oversees compliance with the International Covenant on Economic and Social Rights, voiced concerns that the UK’s financial secrecy legislation and permissive rules on corporate tax are undermining the proper resourcing of human rights, thereby affecting the ability of other States to mobilize resources for the implementation of economic, social and cultural rights. In advance of the UK’s review at the Committee’s 58th Session in June, GJC, CESR and TJN co-authored a submission to the Committee concerning the UK’s responsibility for the impacts of cross-border tax abuse on economic, social and cultural rights.

The Committee’s message to the United Kingdom follows on the heels of another pioneering effort to hold tax havens to account. An earlier submission co-authored by GJC, CESR, TJN, and Berne Declaration asked the UN’s principal women’s rights body—the Committee on the Elimination of Discrimination against Women (CEDAW)—to hold Switzerland to account for the impacts of its financial secrecy and corporate tax policies on women’s rights and gender equality, especially in low and middle-income countries. CEDAW did so, calling on Switzerland to “provide information on the measures taken to ensure that [its] tax and financial secrecy policy does not contribute to largescale tax abuse in foreign countries, thereby negatively impacting on resources available to realize women’s rights in those countries.”  Together, these recent initiatives by UN treaty bodies to scrutinize the tax policies and practices of member States illustrate the important role of human rights norms, principles and institutions, in reshaping the international tax regime.

“By facilitating tax abuse, the UK—like other financial secrecy jurisdictions such as Switzerland—is shirking its legal obligations to respect and protect human rights,” said Nikki Reisch of the Global Justice Clinic. “As a party to the International Covenant on Economic, Social and Cultural Rights, the UN Charter, and other international agreements, the UK has committed to cooperate internationally to create an enabling environment for the fulfillment of economic, social and cultural rights. Its current conduct flies in the face of those commitments.”

July 6, 2016.