Eva Andres-Aucejo

International tax cooperation and illicit capital mobilization as a first (mathematical) derivative of the financing for sustainable development (FFD4)

Introduction

International tax cooperation and illicit capital mobilization as a first (mathematical) derivative of the financing for sustainable development (ffd4). Policy proposals for International Tax Cooperation combat illicit capital & finance sustainable development, ahead of FFD4. Advocates holistic global tax governance & framework agreements.

Abstract

In this article, we will make some policy proposals on International Tax Cooperation to combat illicit capital movements, ahead of the Fourth Summit on Sustainable Development Financing, to be held in Seville, Spain, in 2025. These proposals are as follows:1. We support the goal of making international tax cooperation a central focus within the framework of sustainable development financing at the Fourth Conference on Sustainable Development Financing.2. We promote a clear differentiation at the Fourth Conference on Sustainable Development Financing of the primary role of international tax cooperation in combating illicit capital movements within the scope of sustainable development financing, distinguishing it from the mobilization of domestic capital and therefore creating a separate thematic module or block for these topics.3. For sustainable global development financing to be possible, international taxation, through international tax cooperation, must not be limited to its traditional economic sphere, but must extend its centripetal force to the rest of the social, cultural, environmental, and humanitarian sectors on the path toward the long-awaited financing of sustainable development.4. A holistic approach is maintained regarding the scope of international tax cooperation toward a new global tax governance architecture, where international tax cooperation must serve as a lever to strengthen fair international policies in the areas of mutual assistance and international tax information exchange, the digital economy, the environment, international trade and customs, international tax fraud and illicit capital mobilization, gender, education and tax compliance, taxpayers' rights, cross-border tax dispute resolution, health, etc. The general formulation of how international tax cooperation impacts all these areas can be seen in our pioneering model of the Agreement on International Tax Cooperation, Trade, and Global Tax Governance.5. We are committed to the creation of a framework agreement on international tax cooperation, trade, and global tax governance, and its development protocols, in addition to a series of policy/rule tax making instruments published in our previous work. We are honored that the United Nations has decided to implement two of the policy making instruments we proposed in our previous research, in the same manner we outlined. That is, through a framework convention or framework agreement on international tax cooperation, developed through protocols.6. We advocate for the relationship between "International Tax Cooperation" and "International Trade and Customs." Taxation should promote trade and tariff policies favourable to international trade.7. International tax cooperation should be a field of study included in the global financial architecture for sustainable development.

Review

This article presents a timely and ambitious set of policy proposals aimed at strengthening International Tax Cooperation (ITC) to combat illicit capital movements, specifically anticipating the Fourth Summit on Sustainable Development Financing (FFD4) in 2025. The abstract clearly outlines seven key recommendations, emphasizing the central role of ITC within sustainable development financing, its distinctiveness from domestic capital mobilization, and its expansion beyond traditional economic spheres to encompass social, cultural, environmental, and humanitarian dimensions. The paper advocates for a holistic approach to global tax governance, proposing a comprehensive framework agreement and protocols, and claims prior success in influencing UN policy instruments. This forward-looking perspective, coupled with a commitment to a new global tax architecture, positions the work as highly relevant to current international policy discourse. However, a significant discrepancy arises between the paper's highly intriguing title and the content presented in the abstract. The title, "International tax cooperation and illicit capital mobilization as a first (mathematical) derivative of the financing for sustainable development (FFD4)," strongly suggests a quantitative, perhaps econometric or modeling approach, or at least a conceptual mathematical derivation underpinning the policy proposals. Yet, the abstract contains no mention of any mathematical formulation, model, data analysis, or derivation to support the policy recommendations. This absence of methodological detail regarding the "mathematical derivative" is a critical oversight, leaving the reader to wonder about the analytical foundation of the proposed policies. While the broad scope and ambition of the proposals are commendable, covering areas from the digital economy to gender and health, the abstract does not elaborate on *how* these diverse areas are integrated or supported within the "pioneering model" or framework agreement mentioned. In conclusion, this article offers a compelling and urgent call for enhanced international tax cooperation, providing a rich set of policy ideas that could significantly contribute to discussions at FFD4 and beyond. The proposals to integrate ITC into a broader global governance architecture and expand its scope are particularly valuable. However, to fully realize its potential and justify its title, the paper must address the absence of any mathematical or quantitative underpinning for its derivatives. Future revisions or the full paper should explicitly detail the methodology or theoretical framework used to derive these policies, especially concerning the "first (mathematical) derivative" claim. Clarifying the mechanisms through which the proposed holistic framework would operate and providing more specific references for the claimed UN implementation would further strengthen the paper's impact and credibility.

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