Addressing tax-related IFFs a UN mandate that remains a core African goal in global reforms

TJNA’s Executive Director, Chenai Mukumba, has called on the United Nations member states to prioritise tax-related illicit financial flows in the UN Tax Convention negotiations and process.

Addressing member states at the second round of negotiations of the Terms of Reference for a UN Tax Convention in New York, Ms Mukumba noted that addressing tax-related illicit financial flows remains key to African countries and falls within the UN’s mandate through the Sustainable Development Goals targets.

“The Sustainable Development Goals target 16.4 sets a global goal for significant reduction of illicit financial flows and arms flows, strengthening the recovery and return of stolen assets and combating all forms of organised crime by 2030,” Ms Mukumba added.

Ms Mukumba further disclosed that UN General Assembly resolution 78/230 expressly mandates the UN Tax Convention Ad Hoc Committee to consider the adoption of measures against tax-related illicit financial flows and the taxation of income derived from the provision of cross-border services in an increasingly digitalised and globalised economy.

She also added that taxation is not only a technical issue, but also a development and a human rights issue and that developing progressive tax systems is an urgent matter as has been evidenced by the recent citizen-led protests in Kenya, Ghana, Uganda and Nigeria.

“Taxation means public health, education and even the political stability of whole nations. As we proceed towards the Second Session, we urge member states to keep this in mind as we take steps to reform the international tax system that will improve domestic resource mobilisation and public service delivery in our countries.” She said.

Ms Mukumba also noted that these reforms go beyond the capacity building and technical assistance, to majorly addressing the systemic issues that underpin our global tax system to make it more fair and equitable especially for Africa and the Global South.

She called on the Ad Hoc Committee to work towards the development of terms of reference that will deliver a binding framework convention on international tax cooperation and protocols. She noted that the UN Resolution 78/230 did not limit the scope of the terms of reference.

The Ad Hoc Committee to Draft Terms of Reference for a United Nations Framework Convention on International Tax Cooperation was established by the historic UN General Assembly resolution 78/230 on the promotion of inclusive and effective international tax cooperation at the United Nations.

The second and final negotiation session brought together UN member states, civil society organisations and other stakeholders. Several African countries made strong submissions on the need to reform the current global economic system and the inequalities that deprive the continent of the revenue needed to fund development and consigns it to a constant cycle of economic crises.

Related resources:

• TJNA Submissions on the Zero Draft Terms of Reference for the Development of a UN Framework Convention on International Tax Cooperation

• Tax stakeholders reaffirm commitment toward a common African position in the global tax reform

• African CSOs rally support for the Africa Group as UN Tax Convention negotiations gather pace

• Africa’s Finance Ministers call for heightened capacity building to strengthen tax cooperation among African countries

• Chenai Mukumba: The current international financial system is no longer fit for purpose