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Report highlights tax losses to global tax abuse and provides assessment of global tax reforms.
Key Observations of Report
- Countries are losing US$492 billion a year to global tax abuse.
- Out of this, two-third (US$347.6 billion) is lost to multinational corporations shifting profit offshore to underpay tax.
- Remaining one-third (US$144.8 billion) is lost to wealthy individuals hiding their wealth offshore.
- Nearly half the losses (43%) are enabled by the eight countries (all OECD members) that remain opposed to a UN tax convention: Australia, Canada, Israel, Japan, New Zealand, South Korea, UK and US.
- Countries of Global North lose largest amount of tax revenues in absolute terms while countries of Global South endure the deepest losses as a share of their tax revenues.
- Such tax loss results in foregone public services, increased inequalities between countries, and limited domestic businesses.
Policy recommendations
- Adopt a UN tax convention, which would establish globally inclusive international tax rules, combat cross-border tax evasion, and restore the potential for progressive national taxation.
- A UN framework convention on international tax cooperation will be negotiated from 2025-2027.
- Having excess profits and wealth taxes as it can reduce economic inequality, limit monopoly power, and ensure that those who benefit most from society contribute proportionately to the social good.
Global Tax Reforms
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