London: Tax evasion is costing the world around $ 427 billion a year by transferring money through shadowy tax havens, according to data released by the Tax Justice Network on Friday.
Records around the world have been sifted through in a first-of-its-kind global study, TJN said in a statement – She urged global action on the mysterious tax havens that have diverted billions of dollars from countries currently grappling with the Covid-19 pandemic.
The network, an umbrella grouping of nongovernmental organizations, has examined tax returns for multinational corporations and figures compiled by the Paris-based Organization for Economic Cooperation and Development (OECD) since 2016.
He also assessed 2018 data for individuals from the Bank for International Settlements.
“Countries lose more than $ 427 billion in taxes each year due to international corporate tax violations and private tax evasion,” TJ concluded in his study.
She said this equates to roughly 34 million annual salaries for nursing workers.
TJN also estimated that the total amount of tax evasion consisted of $ 245 billion committed by companies – And $ 182 billion was pledged by individuals.
Multinational corporations funnel about $ 1.38 trillion in profits through tax havens, while individuals invest more than $ 10 trillion in assets there, according to the study.
The world’s richest regions, including Europe and North America, are suffering the biggest financial blow from evasion.
The study identified the British overseas territory of the Cayman Islands as the haven responsible for the largest global tax loss.
Other leading tax havens include British overseas territories, the Netherlands, Luxembourg and low-tax US states such as Delaware and Hong Kong.
Alex Cobham, CEO of TJN, said.
The epidemic has revealed the enormous cost of turning tax policy into a tool for indulging tax violators rather than protecting people’s well-being.
“Now more than ever we must reprogram our global tax system to prioritize people’s health and livelihoods over the desires of those bent on not paying taxes.”