Countries are losing a total of over US$427 billion in revenue each year due to tax abuse by multinational corporations and private actors according to the first ever State of Tax Justice report.
Published jointly by the Tax Justice Network, Public Services International and the Global Alliance for Tax Justice, State of Tax Justice 2020 is the first study to rigorously measure official data to determine how much every country loses to both international corporate tax abuse and private tax evasion.
A significant feature of this report is the methodology employed by the authors. The report analyses official data submitted by multinational corporations to tax authorities and recently published by the OECD.
This allowed the report authors to directly measure tax losses arising from observable corporate tax abuse.
Of the US$427 billion in tax lost each year globally the report shows that US$245 billion is directly lost to corporate tax abuse by multinational corporations and US$182 billion to private tax evasion.
Multinational corporations paid billions less in tax than they should have by shifting US$1.38 trillion worth of profits out of the countries where they were generated and into tax havens, where corporate tax rates are extremely low or non-existent.
Private tax evaders paid less tax than they should have by storing a total of over US$10 trillion in financial assets offshore.
State of Tax Justice 2020 can be downloaded here.
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