World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 

States must act against abusive tax conduct of corporations

Paradise Papers: States must act against “abusive” tax conduct of corporations - UN human rights experts


GENEVA (9 November 2017) – International corporations responsible for systematic tax abuse should be downgraded by rating agencies and investment funds in their environmental, social and governance performance, UN human rights experts have said, as information from the leaked Paradise Papers continues to be made public.

“States must stop harmful tax competition amongst each other and work together to stop unethical tax avoidance schemes for wealthy individuals and international corporations. Corporate tax abuse undermines social justice and human rights worldwide,” said Juan Pablo Bohoslavsky, whose remit as a UN Independent Expert includes monitoring the impact of illicit financial flows on human rights.

The Paradise Papers have exposed systematic tax avoidance schemes by well-known international corporations, making use of tax havens in places such as Bermuda, the Cayman Islands, and the Isle of Man.
“We call on businesses to assume their corporate responsibility, in line with the UN Guiding Principles on Business and Human Rights”, said Surya Deva, chairperson of the UN Working Group on Business and Human Rights. “All business enterprises have a responsibility to avoid adverse human rights impacts caused or contributed by their tax evasion practices”.

The experts stressed how business enterprises should comply with both the letter and spirit of tax laws and duly contribute to the public finances of the countries in which they operate, as also clarified in the OECD Guidelines for Multinational Enterprises.

The experts note that the series of scandals, including the Luxembourg and Bahamas leaks, the HSBC files, the Panama Papers, and now the Paradise Papers, made it clear there were widespread practices of tax abuse that had to be addressed.

“Wealthy individuals and international corporations are continuing to engage in unethical practices, reducing their tax burdens to minimal levels by using tax havens, which undermines the realisation of human rights” said Mr. Bohoslavsky.

The experts noted that many States are struggling with increased debt levels as tax revenues do not match public expenditure. “Instead reducing spending on social security, public health care, housing or education, Governments should make greater efforts to ensure tax justice,” the experts said

The experts pointed out that corporations use publicly-funded infrastructure to transport and sell their products, employ people who have normally been educated at public expense, and expect their managers and employees to receive publicly-funded health care when they are ill. Yet, corporations shift their profits around to reduce their own tax contribution to a minimum.

The experts also noted that the law firms that facilitate tax avoidance schemes must assume their responsibility.

“The UN Guiding Principles apply to law firms too – they should consider human rights implications of their legal advice given to businesses”, Mr. Deva noted, drawing attention to the Practical Guide on Business and Human Rights for Business Lawyers adopted by the International Bar Association in 2016.

“It is not sufficient for business corporations to ensure respect for human rights and international labour standards in business practices and value chains. These commitments have to extend to taxation, if firms are to be regarded as ethical,” the experts concluded.

The issue of corporate tax avoidance will also be addressed at the UN Forum on Business and Human Rights that will be held in Geneva, Switzerland, from 27 to 29 November 2017.

ENDS

© Scoop Media

 
 
 
World Headlines

 

Gordon Campbell: Is This Guy The World’s Most Dangerous Thirtysomething?

Saudi Arabia has long been regarded as a pillar of stability in the Middle East, and is the essential caterer to the West’s fossil fuel needs. It is also the country that gave us Osama Bin Laden, al Qaeda, and 15 of the 19 terrorists who carried out the 9/11 attacks... More>>

ALSO:

Non-Binding Postal Vote: Australia Says Yes To Same Sex Marriage

Binoy Kampmark: Out of 150 federal seats, 133 registered affirmative totals in returning their response to the question “Should the law be changed to allow same-sex couples to marry?”. More>>

ALSO:

Bonn Climate Change Conference: Protecting Health In Small Island States

The vision is that, by 2030, all Small Island Developing States will have health systems that are resilient to climate change and countries around the world will be reducing their carbon emissions both to protect the most vulnerable from climate risks and deliver large health benefits in carbon-emitting countries. More>>

ALSO:

Camp Shut Down: Refugees Must Be Rescued From Manus

On 31st October 2017, the detention centre on Manus Island in which the Australian Government has been holding more than 700 refugees was closed, leaving those living there in a desperate situation. More>>

ALSO:

EARLIER:

Rohingya Muslims Massacred: Restrictions On Aid Put 1000s At Risk

Amnesty: The Myanmar authorities’ restrictions on international aid in Rakhine state is putting tens of thousands of lives at risk in a region where mainly Rohingya people are already suffering horrific abuses from a disproportionate military campaign. More>>

ALSO:

 
 
 
 
 
 
  • Pacific.Scoop
  • Cafe Pacific
  • PMC