Tax evasion costs states $ 427 billion annually

The amount of tax evasion in the world amounts to 427 billion dollars annually, reveals this Friday, November 20. the NGO Tax Justice Network. In a report based on data from the OECD and the Bank for International Settlements (BIS), the NGO attempted to analyze tax evasion on a country-by-country basis, whether by companies or individuals.

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

Of these 427 billion dollars that escape taxes, the equivalent of the annual salary of 34 million nurses. 245 billion are the work of companies and 182 billion people.

12.6% of the European health budget

The report explains that multinationals move the equivalent of 1.38 billion dollars in profits to tax havens, but also to several rich countries that do not always belong to black lists like the one established by the EU. Individuals place a total of more than 10,000 trillion in financial assets.

The regions that lose the most are those who are the richest. North America loses 95 billion dollars and Europe 184 billion, that is, compared to the full pandemic, respectively 5.7% and 12.6% of its budget dedicated to health.

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

Call to tax the richest most

The report also examines which countries benefit the most from this tax evasion. The Cayman Islands, the UK’s overseas territories, are the big winners, capturing 16.5%, ahead of the UK (10%), the Netherlands (8.5%), Luxembourg (6.5%). ) and the United States (5.53%).

“Under pressure from large corporations and tax havens
like the Netherlands or the UK and its network, our governments have put the needs of businesses and wealthy individuals before the needs of everyone else, “said Alex Cobham, CEO of the Tax Justice Network, quoted in a statement.

On the eve of the G20 virtual summit organized by Saudi Arabia, the NGO urges states to impose more taxes on companies and wealthy people, in order to reduce inequalities caused by the pandemic.

The writing recommends you

read more

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button