Tax policies with a human rights perspective: towards greater tax justice

Abstract

Purpose: The main objective of this study is to analyse tax policies from a human rights perspective.

Motivation: This study is inspired by the observation of crises that appeal to us, revive existing challenges, and lead us to re-evaluate public services. In connection with the causes and consequences of these contexts, this study formulates a new approach to taxation practices, connecting the design of tax policies with their capacity to contribute to the realisation of economic, social, and cultural human rights.

Design/Methodology/Approach: The research was carried out following a methodology that includes a review of the relevant literature, the analysis of the work of international institutions in the field, and the examination of international and regional legal frameworks for the protection of human rights, in connection with states’ obligations to provide adequate services.

Main findings: Tax justice stands as a pillar to ensure that states, through the management of public resources, can fulfil their obligations in the mitigation of economic and social inequalities and in the funding of rights and public services.

Practical implications/Managerial impact: The changes resulting from globalisation, transnational trade, offshoring of production and, among others, advances in digitalisation, make it necessary to analyse the validity of the foundations of our tax systems towards achieving the long-awaited tax justice. This study aims to contribute to the consolidation of the basis for this necessary connection between tax policies and human rights.

Novelty/Contribution: This study argues that only those tax policies that integrate a human rights perspective can be considered optimal for achieving tax justice.

Keywords:

• human rights
• tax policies
• tax justice
• tax avoidance
• tax evasion

Acknowledgements

Benjamín Sevilla-Bernabéu: This research article is part of the project “La necesaria actualización de los sistemas tributarios ante los retos del S. XXI (XXITAX)”, Prometeo/2021/041, XXITAX, Generalitat Valenciana.

Estrella Del-Valle-Calzada: This work was supported under the grant “Margarita Salas”, as a beneficiary of the contest for the awarding of grants for the requalification of the Spanish university system of the Ministry of Universities of the Government of Spain, funded by the European Union, NextGenerationUE, 2022.

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 Translation from the original in Spanish.

2 Translation from the original in Spanish.

3 American Declaration of the Rights and Duties of Man, preamble. See also chapter two.

4 African Charter on Human and Peoples' Rights, Article 27.1.

5 From our point of view, “repricing” is not sufficiently significant to be classified as a pillar for these purposes. This pillar refers to the possibility of making use of the State's taxing power to generate changes in commercial behavior, for example, through taxes on products that are harmful to health such as tobacco or sugar. In our view, this is potentially disconnected from achieving tax justice.

6 Translation from the original in Spanish.

7 Data as of January 2024.