A/HRC/28/33 and technical cooperation and assistance in a way that promotes the realization of children’s rights. 26. Taxation is the most sustainable and predictable source of financing for the provision of goods and services, allowing for long-term, sustainable strengthening of systems.18 The more a State can rely on domestic rather than external resource mobilization for its financing, the more it will be able to sustain implementation of its development strategies and policies that are responsive to the needs of its people and accountable to them.19 27. States need to make their best efforts to expand tax revenue collection by, for example, broadening the tax base, closing tax loopholes and promoting international cooperation to avoid tax evasion, as well as by enhancing equity in revenue collection, including by actively pursuing technical assistance to strengthen public administration capacity in this area. Strong tax policies must be accompanied by the administrative and institutional capacity to collect taxes fairly and efficiently. 18 28. The level of income generated and the process through which income is generated have an impact on the realization of children’s rights. Revenue collection is a critical tool in tackling and redressing systemic discrimination; States should set up a progressive taxation system with real redistributive capacity that preserves, and progressively increases, the income of poorer households. 20 29. In addition, Governments have the responsibility of ensuring that tax policy does not perpetuate inequality or worsen the situation of poor families. Taxation schemes as a whole should not be regressive, and any taxes with a regressive effect must be avoided or their impact mitigated. Actions or omissions by the State must not discriminate, either directly or indirectly, against any individual or group, or perpetuate inequality. According to the Special Rapporteur on extreme poverty and human rights, in order to redress structural inequalities, States should evaluate the differential impact of existing and proposed fiscal policies on different groups, in particular those who suffer from structural discrimination. 21 Periodic child impact assessments of fiscal and tax policies may assist Governments to ensure that they do not undermine the progressive realization of children’s rights. 30. Ineffective taxation systems can limit the resources available for the fulfilment of children’s rights. States should therefore develop and implement effective laws and regulations to obtain and manage revenue flows from all sources, ensuring transparency, accountability and equity.22 According to estimates, international crime, corruption, and tax evasion cost the developing world $946.7 billion in 2011.23 Globally, illicit outflows represent as much as 4 per cent in lost GDP;18 it is furthermore assumed that developing countries lose more income owing to the existence of international tax havens, illegal capital flight and lack of transparency in the international economy than the amount they receive in foreign aid.24 A State that does not take strong measures to tackle tax abuse and illicit financial flows cannot be said to be devoting the maximum available resources to the realization of economic, social and cultural rights. 25 18 19 20 21 22 23 24 25 8 Save the Children, Tackling Tax and Saving Lives (London, 2014). A/HRC/26/28, para. 52. A/HRC/26/28, para. 16. Ibid., para. 17. CRC/C/GC/16, para. 55. See Dev Kar and Brian LeBlanc, Illicit Financial Flows from Developing Countries: 2002-2011 (Global Financial Integrity, Washington DC, 2013). Save the Children, Investment in children – investment in everyone (London, 2014), p. 5. A/HRC/26/28, para. 60.