Thursday, May 6, 2021

Global tax evasion hits $ 427 billion annually

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Zubair Yaqoob
Zubair Yaqoob
The author has diversified experience in investigative journalism. He is Chief content editor at wnobserver.com
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Governments around the world lose about $ 427 billion annually due to fraud and tax evasion as companies and wealthy people divert their money to tax havens, according to a comprehensive new report calling for tax reform.

According to the report which provides or details of the losses at the country level, the US government is the biggest loser, losing about 90 billion dollars in tax revenue annually.

In contrast, poor countries lose a greater share of their total tax revenues due to abusive practices, about 5.8% compared to 2.5% in high-income countries, according to the report that analyzed data in 2016 and 2017.

NBFI

Lost tax revenues are particularly harmful in the Corona crisis, as many countries struggle to combat infection and support the ailing economy and workers, counts the report issued by the Tax Justice Network, the Global Alliance for Tax Justice and a trade union organization called International Public Services.

The authors of the report wrote that they say that with the Corona epidemic shedding a harsh light on the enormous cost of health and public services suffering from underfunding around the world, these numbers represent a tragedy. They added that the tax violations deny countries millions and millions of much-needed taxes, and hinder everyone from building better, healthier and fair societies.

The missing funds will be enough to pay the salaries of 34 million male and female nurses annually, according to the researchers.

The report noted that the blame falls not only on multinational corporations and the wealthy, but also on high-income countries that have stopped serious reform of the broken international tax system and actively concealed the scale and extent of international tax abuse from their residents.

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