“New estimates reveal the extent of tax avoidance by multinationals”

Posted on Updated on

Source: tax justice.net 22 March 2017

“New figures published by the Tax Justice Network provide a country-level breakdown of the estimated tax losses to profit shifting by multinational companies.

Applying a methodology developed by researchers at the International Monetary Fund to an improved dataset, the results indicate global losses of around $500 billion a year.

The figures appear in a study published on 22 March 2017 by the United Nations University World Institute for Development Economics Research (UNU-WIDER, in Helsinki).

The data showed that whilst the largest losses occurred in rich economies such as the United States, lower-income countries were the biggest victims of profit shifting.

Some countries, such as Argentina (4.42%) lost a significant proportion of their GDP to profit shifting.

In Chad, the estimated losses to profit shifting were larger than all of the (non-resource) taxes collected in the country that year and in Pakistan the losses were 40% of tax revenues.

While any estimates of this deliberately hidden phenomenon are necessarily uncertain, the order of magnitude indicates that the economic development of countries may in some cases be significantly undermined by the activities of multinational companies.

The study was published as part of the WIDER working paper series.  A link to the full study can be found here: https://www.wider.unu.edu/node/74539

Source article here

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s