The EU must champion global tax justice, especially in developing countries.
The EU has a major role to play in ensuring a positive outcome of the Financing for Development Conference in Addis Ababa this summer. Policy Coherence for Development is a key principle in this regard, and domestic resources such as taxation are the most important source of revenue for financing economic and social development.
With the principle of PCD enshrined in its Lisbon Treaty, the EU acknowledges its legal commitment to take development cooperation objectives into account in policies that the EU implements. Combined with the fact that the EU has consistently reiterated its commitment to playing an important and constructive role in both the post-2015 and FfD processes, the EU needs to champion the principle of PCD in the FfD negotiations. Taxation is in this regard seen by many as the crux of financing sustainable development.
This paper identifies and elaborates key reforms of the international tax system that the EU must push for ahead of the Addis Ababa conference, namely:
- The establishment of an intergovernmental body on tax matters
- The achievement of greater corporate transparency
- The inclusion of developing countries in the automatic exchange of tax information
- The promotion and operationalization of the principle of Policy Coherence for Development
more information and download: http://www.concordeurope.org/publications/item/421-spotlight-on-policy-coherence-for-development-2015