Illicit financial flows — from tax evasion and avoidance of high-net-worth individuals and multinational enterprises — undermine revenues and development, especially in low-income countries. ICRICT calls for a UN protocol to strengthen international cooperation and address the problems in existent international tax architecture to effectively tackle international tax evasion and avoidance. Recommendations include increasing tax transparency with robust beneficial ownership registers and effective exchange of information, and a structural reform of global tax rules, including unitary taxation of multinationals, which may be accompanied by simplified source taxation on royalties and services, is deemed essential to curb IFFs.
