abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphLinkedInlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb
Article

2 Aug 2016

Author:
Christian von Haldenwang, German Development Institute, on Tax Justice Network

Commentary: Developing countries need to be involved more closely in intl. cooperation on tax issues

"Guest blog: involve developing countries more in international tax co-operation", 19 Jul 2016

...Large multinational companies exploit international loopholes in laws and regulations and shift profits artificially to states with particularly low rates of taxation...[C]ompanies such as Mossack Fonseca and countries such as Panama provide the know-how and infrastructure to avoid and evade paying taxes...[T]he existing studies enable two general statements to be made: First, poorer countries are affected more than richer industrialised countries with regard to their economic strength and tax base...Second, the amount of financial assets hidden in tax havens and the annual flows of capital from developing and emerging countries have increased further since the global financial crisis of 2009. This contradicts the impression given that measures introduced under the aegis of the OECD, the EU and the G20...had already resulted in effective curtailment of the problem...Multinational companies in particular utilise the business model of tax havens and loopholes in the international tax system to dramatically lower their tax burden...The effects are grave: the countries affected are deprived of the necessary resources for the realisation of development policy objectives. In addition, public investments...