New figures published today 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 today by the United Nations University World Institute for Development Economics Research (UNU-WIDER, in Helsinki).
Coming out of the economic crisis Ireland was one of the best performing economies, with GDP growth rates of 8.5% in 2014 and an extraordinary 26.3% in 2015. But how much of this economic activity was real, and how much a fiction created by Ireland’s tax haven status? A new paper by Heike Joebges of the University of Applied Science in Berlin considers the evidence.
The introduction of a key policy tool against multinational companies’ tax avoidance has been handled so badly that developing countries are now exposed to worse inequalities. In a new report published today, we call for immediate changes to limit the damage done.
The British Prime Minister today hinted that she is considering further corporate tax cuts and increases in corporate welfare after US President elect Donald Trump signaled he would seek to slash the US federal corporation tax rate to 15%. Theresa May’s speech signals a renewed commitment by her government to what it misleadingly called ‘tax competition’. In our view, the policy is an act of economic recklessness which puts the UK at the head of a global race to the bottom on corporate taxation that the world really does not need.
The Methodist Tax Justice Network, the Global Alliance for Tax Justice and one of our senior advisors Professor Sol Picciotto have just published a very useful up-to-date account of where the OECD and G20 have got to on tax reform, along with a useful explanation of the Unitary Taxation alternatives which you can download here.