In the budget,Osborne is taking action on multinationals avoiding tax in developing countries. But Britain needs to investigate its own tax treaties and show that we support fair playIn this budget George Osborne will propose to slash the tax relief on debt interest, a loophole exploited by multinational corporations to spirit untaxed profits out of the countries in which they operate and into a constellation of tax havens. When rich countries start sounding the alarm on corporate tax avoidance, or you know the situation must be wicked.
But while rich nations like the UK lose between 0.5% and 3% of revenue to tax avoidance,developing countries are hit considerably harder, losing 6-13%, or up to 26 times more. The IMF calculates that every year around $200bn of untaxed income is taken out of destitute countries by the international corporations operating on their territory. That is around 50% more than the total amount they receive in aid from rich counties.
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Source: theguardian.com