The United Nations’ top advocate for human rights has advised Ireland to reinforce its business tax laws, citing that they currently enable affluent individuals and companies to manipulate loopholes and conceal earnings. The UN Economic, Social and Cultural Rights Committee has disclosed a document after a two-day deliberation in Geneva where Irish politician Joe O’Brien and his team faced a range of interrogations.
The body expressed its concern over indications that policies maintaining financial secrecy and lenient corporate taxation consistently obstruct Ireland and other nations in fulfilling their duties. It urged Ireland to bolster actions against unlawful monetary movements, cross-border tax evasion, and fraudulent behaviour, especially when instigated by wealthy individuals or businesses operating within Ireland.
The Committee also demanded that Ireland takes comprehensive steps to prevent the utilisation of shell companies for profit manipulation, evasion of tax and fraudulent activities. This includes enhancing legal provisions and protections for individuals reporting wrongdoings. On top of that, it was suggested that Ireland carry out an autonomous, extensive evaluation of its local and global tax policies’ impact on emerging economies, with a report of the findings to be subsequently delivered.
After the document was released, Conor O’Neill, from Christian Aid Ireland, noted that enabling business tax evasion has persistently been an overlooked issue in Ireland. He stated that the country is instrumental in many conspicuous cases of global tax evasion, which typically disadvantages poorer nations. He described how dire the situation can be, as seen from the developmental perspective, with funds lost that should have been allocated for crucial infrastructures like hospitals and schools, further perpetuating the dependence on aid and entrapping individuals in fiscal hardship.
Dr Gearóid Ó Cuinn, leader of the global legal action network, highlighted the atypical nature of UN human rights committees directly voicing their concerns about the implications of foreign tax policies, with Ireland being flagged twice within a year. He cited that it is now indisputable that Ireland’s taxation policies are compromising basic rights in affected countries by limiting access to essential services such as healthcare and education.
The United Nations committee has definitively established that Ireland is legally obliged under international mandate to collaborate with fellow nations in overhauling its existing strategies and take initiatives to eliminate detrimental profit shifting by corporations. The UN panel voiced further apprehension regarding the increasing differential in income within Ireland, along with transfer shortcomings which do not connect with their intended beneficiaries within the population.
Moreover, the committee expressed worry over the ongoing gender pay and retirement benefit discrepancies that persist owing to the vertical and horizontal gender segregation prevalent in the labour market, making women over-represented in part-time, low-wage jobs.
In spite of welcoming the proposed national living wage to be rolled out by 2026, the committee made an observation that the current minimum wage still falls short in substantiating a decent standard of living for employees and their dependent families.
In the area of housing, the committee voiced concern over the continuing lack of equivalent increase in housing provision in line with demand leading to escalation of rental costs, thereby impacting the socially marginalised and disadvantaged the worst.
The committee also pinpointed the deficiency in social housing which has caused households to resort to private renting. However, this solution is proving subpar in terms of affordability, habitability, accessibility and continuity of occupancy.
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