Tax Commitments in the Compromiso de Sevilla – Critical Issues in Financing for Development

Abstract

Crucial financial topics have been debated during the latest International Conference on Financing for Development. After taking stock of different stakeholders’ input, their contributions within the tax field are systematized, and the outcome document is critically assessed. The renewed framework for Domestic Resource Mobilization (DRM) comprises stronger tax policies and administrations, tax reforms based on smart use of context-specific data, and the improvement of specific categories of taxes. It addresses progressivity, solidarity and international tax cooperation, taking into consideration human rights. African countries have relied on their own efforts to strengthen DRM capacity but call for support in the fight against illicit financial flows. They are simultaneously working collectively to shape the UN Framework Convention on International Tax Cooperation and its protocols. In any reconfiguration of the domestic or international financial architecture, the oversight by audit institutions should be reinforced. Despite wishes to quickly put into practice several commitments with The Sevilla Platform for Action, the Compromiso de Sevilla may fall short regarding taxation.