Taxation as a human rights policy

Abstract

Purpose: This study aimed to analyse the interaction between local tax policies and human rights by evaluating and possibly safeguarding against any injustice which may arise in the Maltese tax system through the fiscal policies implemented. The design of the tax system was additionally evaluated to determine whether it creates problems of inequality and discrimination. Design: The objectives of the study were achieved through sixteen semi-structured interviews carried out with local tax lawyers, tax practitioners, and a Ministry representative to explore different perspectives from a wide range of people engaged in tax and human rights. Findings: This study showed that, in drafting fiscal policies, equality and nondiscrimination are not always kept in mind, as well as good governance, accountability, and transparency, leading to a negative human rights outcome. It is vital to implement tax policies of good quality in order to achieve what they were designed to reflect, while regulating the country’s taxation. The tax system was deemed fair by most participants, thus providing a good balance between the need to raise revenue and incentivising the economy and personal effort. Moreover, all the participants were unanimous that, to ensure a successful future, better enforcement is needed. Conclusion: The study concluded that more specialisation is needed in the area of tax and human rights. Transparency, accountability, and non-discrimination are issues which need to be constantly considered when devising tax policies to safeguard more citizens’ rights. Lately, good policies have been implemented locally, showing that we are moving in the right direction. Tax systems might also need to be continually revised and updated to cater for the different needs of citizens and everchanging society. Value: Given that there has been a lack of local studies on this subject, this research aimed to address this lacuna in the literature. Moreover, it aimed to rekindle a discussion among lawyers and accountants of the possibility of moving towards a tax system based on impartiality between human rights and tax.