Wemos among 200+ organizations providing inputs to the UN Tax Convention process

Between 29 July and 16 August 2024, member states of the United Nations (UN) will participate in the second session of discussions on the terms of reference for the UN Framework Convention on International Tax Cooperation (Framework Convention). This convention aims to “strengthen international tax cooperation and make it fully inclusive and more effective”, by combating both tax evasion and tax avoidance. Wemos, along with more than 200 civil society organizations and trade unions around the world, supported a letter by the Global Alliance for Tax Justice with comments on the terms of reference for the Framework Convention. This letter was intended to critically prepare governments well ahead of the next round of discussions starting next week.

The urgent need to address international tax abuse under the UN

International tax abuse, especially by multinationals and the super-rich, is depriving governments of billions of dollars in tax revenue annually. According to the Tax Justice Network, the sum lost due to tax abuse amounts to an impressive USD 427 billion. This money, diverted from public coffers worldwide and especially those of low-income countries , could be used to provide essential services such as universal health care. Additionally, countries need these resources to meet commitments on development, human rights, and environmental protection.

This highlights the need for effective rules on international tax cooperation that are binding for all countries. Current tax cooperation agreements, including the ones developed by the OECD, are ineffective because of a host of systemic problems. An inclusive, fair, equitable, progressive, transparent, and comprehensive international tax system under UN auspices is crucial for effective public resource mobilization for health equity and planetary health.

Human rights at the center of the Framework Convention

In the letter, civil society organizations and trade unions emphasize the imperative to place human rights at the core of the Framework Convention. The zero draft terms of reference only mentioned human rights in the context of privacy, which falls far short of what is needed. 

In the upcoming second round of negotiations, it is essential that member states commit to defending human rights and integrating them into the convention’s development. As Wemos global health advocate, Barbara Fienieg puts it:

Access the full version of the letter and read more from Global Alliance for Tax Justice here.