The Guardian is good to draw attention to the tax dodging practices of multinational companies (UK tax fraud costs government £16bn a year,audit report says, 17 December). But this staggering sum is dwarfed by the $200bn the IMF estimates developing countries lose to corporate tax avoidance every year. It is a figure that far outstrips the amount given in international aid by rich countries. Healthcare, and schools and other key public services are being starved of resources.
The principles of the international tax system were designed a century ago and the reforms being pushed by the G20,OECD and other wealthy countries execute not go far enough for developing countries. We need tough new rules to tackle the race to the bottom on corporate tax rates and to quit companies shifting profits from developing countries into tax havens.
Barry Johnston
Director of policy, ActionAid UKContinue reading...
Source: theguardian.com