Global tax evasion costs $ 427 billion a year – rts.ch

Tax evasion in the world on the part of companies or individuals costs each year 427 billion dollars to States, for the benefit of tax havens or countries with little scrutiny, according to an NGO.

The NGO Tax Justice Network scrutinized tax evasion country by country in a report which it presents Friday as the first of its kind and which tries to shed light on financial flows known for their opacity.

The figures, published as the world fights the Covid-19 pandemic, were compiled from declarations by multinationals to tax authorities, recently published by the OECD and which date from 2016. For individuals, the NGO s ‘is based on bank deposit data available from the Bank for International Settlements (BIS) from 2018.

The NGO considers tax evasion any financial flow abroad in order to avoid taxation, without entering into the debate as to whether it is illegal or not.

The rich preterite regions

Of this sum of 427 billion dollars (389 billion francs) escaping tax, 245 billion are the work of companies and 182 billion individuals.

The report explains that multinationals move the equivalent of 1380 billion dollars of profit in tax havens, but also to several rich countries which do not always belong to blacklists like the one established by the EU. In total, individuals invest more than 10,000 billion in financial assets.

The regions that lose the most are the richest. North America loses 95 billion dollars and Europe 184 billion, or, by comparison in the midst of the coronavirus, 5.7% and 12.6% respectively of their budget dedicated to health.

A practice that benefits others

Latin America and Africa lose less money, but the impact is much greater, since it represents 20.4% and 52.5% of their health budget, respectively.

The report also examines the countries that benefit the most from this tax evasion. The Cayman Islands, overseas territories of the United Kingdom, are the big winners, capturing 16.5%, ahead of the United Kingdom (10%), the Netherlands (8.5%), Luxembourg (6, 5%) and the United States (5.53%).

ats / gma

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