A/HRC/31/61 I. Introduction 1. In its resolution 25/9, the Human Rights Council requested the Independent Expert on the effects of foreign debt and other related international financial obligations of States on the full enjoyment of all human rights, particularly economic, social and cultural rights, to undertake a further study to analyse the negative impact of illicit financial flows on the enjoyment of human rights in the context of the post-2015 development agenda and to present an interim study to the Council at its twenty-eighth session and a final study at its thirty-first session. After presenting his interim study (A/HRC/28/60), the Council requested the Independent Expert in its resolution 28/5 to participate in the third International Conference on Financing for Development and to convene an expert meeting on funds of illicit origin with the view to include its outcome in his final study. 2. The Independent Expert welcomes the request to analyse the human rights implications of illicit financial flows, which divert resources away from activities that are critical for poverty eradication and sustainable economic and social development, as well as for realizing economic, social, cultural, civil and political rights and the right to development. Illicit financial flows also contribute to the build-up of unsustainable debt as Governments lacking domestic revenue may resort to external borrowing. 3. In May 2015, the Independent Expert provided comments on the draft outcome document of the third International Conference on Financing for Development in Addis Ababa to all member States. His interventions focused on ensuring better coherence of the outcome document with existing human rights obligations of States, with particular attention to the chapters covering illicit financial flows and foreign debt. 1 4. Curbing illicit financial flows will be essential for realizing human rights and achieving sustainable development. The Independent Expert therefore welcomes the adoption of the outcome document of the third International Conference on Financing for Development, the Addis Ababa Action Agenda (General Assembly resolution 69/313, annex) and the Agenda 2030 for Sustainable Development (Assembly resolution 70/1). It is the first time that two key international documents recognize explicitly the detrimental effects of illicit financial flows on sustainable development. While the Millennium Development Goals had remained silent on the issue, States have now pledged to significantly reduce by 2030 illicit financial flows and strengthen the recovery and return of stolen assets (target 16.4) in the Agenda 2030. This can be considered a remarkable progress. 5. In his interim study, the Independent Expert discussed a large number of phenomena classified as illicit financial flows, including illegal tax evasion; tax avoidance by transnational corporations; bribery, corruption and concomitant asset recovery; and other criminal activities. While those activities negatively affect human rights in a number of ways, it has been estimated that the majority of all illicit financial flows are related to crossborder tax-related transactions. Curbing tax-related illicit financial flows thus has the potential to make the largest fiscal impact and would enlarge domestic resources available for the realization of human rights, including social, economic and cultural rights. The present study complements the interim study by focusing in more detail on the tax-related illicit financial flows: tax evasion by high net-worth individuals, commercial tax evasion through trade misinvoicing and tax avoidance by transnational corporations. It also explains the standing obligations of States under international law to counter these tax-related illicit financial flows. 1 Available from www.ohchr.org/Documents/Issues/IEDebt/Paper3FFD22May2015.pdf. 3