The Wealthy Robbing Countries $483 Billion In Tax A Year - Report

2 years agoTue, 23 Nov 2021 19:49:58 GMT
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The Wealthy Robbing Countries $483 Billion In Tax A Year - Report

The 2021 edition of the State of Tax Justice shows that countries are losing a total of $483 billion in tax a year to global tax abuse committed by multinational corporations and wealthy individuals.

The documents show that Organisation for Economic Cooperation and Development (OECD) member countries that control global tax rules are responsible for facilitating the handing over of $378 billion a year from public purses around the world to the wealthiest multinational corporations and individuals.

The ‘State of Tax Justice 2021’ was published by the Tax Justice Network, the Global Alliance for Tax Justice and the global union federation Public Services International.

It also reports that $312 billion is lost to cross-border corporate tax abuse by multinational corporations and $171 billion is lost to offshore tax evasion by wealthy individuals.

The $483 billion loss consists of only direct tax losses, that is, tax losses that can be observed from analysing data self-reported by multinational corporations and from banking data collected by governments.

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Uncounted in this estimate are the indirect losses, the chain-reaction losses that arise from tax abuses accelerating the race to the bottom and driving tax rates down globally.

The IMF estimates that indirect losses from global tax abuse by multinational corporations are at least three times larger than direct losses. 

Tax Justice Network data scientist Miroslav Palanský said:

The $483 billion lost to tax havens a year is the tip of the iceberg. It’s what we can see above the surface thanks to some recent progress on tax transparency, but we know there’s a lot more tax abuse below the surface costing magnitudes more in tax losses.

Over 99 per cent of global tax losses countries suffer result from multinational corporations and wealthy individuals utilising abusive tax regulations and loopholes in higher-income countries.

More: The Chronicle



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