Chapter 4 | Page 169 Many challenges associated with fair and equitable taxations systems remain. These include deficits in corporate taxation regimes, which allow businesses to exploit the system through transfer pricing, tax havens and shadowy financial centres.133 Current deficits in effective communication on taxation and lack of international fiscal co-operation are also identified as reasons for tax regimes’ failure to raise sufficient funds for social development and human rights realisation.134 Both the campaign for greater tax justice at the local level and efforts to combat international tax evasion and avoidance practices can be regarded as part of the struggle for the realisation of human rights.135 The fairness and equity of taxation systems can be ensured by identifying the link between human rights obligations and taxation and the role of taxation policies using the principles of maximum available resources, non-discrimination and equality, and transparency, accountability and participation.136 Addressing these questions of adequacy and equity in the tax system is essential from the perspective of ESC rights, not only because of their direct impact on the amount of revenue the government would be able to raise, but also because of the positive human rights implications. From this perspective, a more equitable tax system helps address a number of social and economic factors that lead to ESC rights violations. 4.3.4 Indicators of policy effort Having identified several challenges associated with increasing and maximising domestic revenue of the government, a key question that needs to be answered is, how do we determine if States are serious about domestic 133 Wolfgang Obenland, 'Taxes and human rights' (Policy brief of the Tax Justice Network Germany, Tax Justice Network Germany, 81. 134 Ibid. 135 Ibid. 136 Radhika Balakrishnan and Diane Elson, 'Economic Policies and Human Rights Obligations' in Radhika Balakrishnan; Diane Elson (ed), Economic Policy and Human Rights (Zed Books, London, 2011) 257, 20; International Council on Human Rights Policy, Human Rights in the global economy: Report from a colloquium (International Council on Human Rights Policy, 2010), 8.

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