December, 12 2016, 10:30am EDT
For Immediate Release
Contact:
Phone,+1 617 482 1211 (Toll-free 1-800-77-OXFAM),Email,info@oxfamamerica.org
World's Worst Corporate Tax Havens Exposed
Bermuda, the Netherlands, Ireland and Luxembourg are among the world's 15 worst corporate tax havens, according to new Oxfam research published today. The report 'Tax Battles,' reveals how these tax havens are leading a global race to the bottom on corporate tax that is starving countries out of billions of dollars needed to tackle poverty and inequality.
WASHINGTON
Bermuda, the Netherlands, Ireland and Luxembourg are among the world's 15 worst corporate tax havens, according to new Oxfam research published today. The report 'Tax Battles,' reveals how these tax havens are leading a global race to the bottom on corporate tax that is starving countries out of billions of dollars needed to tackle poverty and inequality.
The full list of the world's worst tax havens, in order of significance are: (1) Bermuda (2) the Cayman Islands (3) the Netherlands (4) Switzerland (5) Singapore (6) Ireland (7) Luxembourg (8) Curacao (9) Hong Kong (10) Cyprus (11) Bahamas (12) Jersey (13) Barbados, (14) Mauritius and (15) the British Virgin Islands. The UK does not feature on the list, but four territories that the United Kingdom is ultimately responsible for do appear: the Cayman Islands, Jersey, Bermuda and the British Virgin Islands.
Oxfam researchers compiled the 'world's worst' list by assessing the extent to which countries employ the most damaging tax policies, such as zero corporate tax rates, the provision of unfair and unproductive tax incentives, and a lack of cooperation with international processes against tax avoidance (including measures to increase financial transparency).
Many of the countries on the 'world's worst' list have been implicated in tax scandals. For example Ireland hit the headlines over a tax deal with Apple that enabled the global tech giant to pay a 0.005 percent corporate tax rate in the country. And the British Virgin Islands is home to more than half of the 200,000 offshore companies set up by Mossack Fonseca - the law firm at the heart of the Panama Papers scandal.
Esme Berkhout, tax policy advisor for Oxfam said: "Corporate tax havens are helping big business cheat countries out of billions of dollars every year. They are propping up a dangerously unequal economic system that is leaving millions of people with few opportunities for a better life."
Tax dodging by multinational corporations costs poor countries at least $100 billion every year. This is enough money to provide an education for the 124 million children who aren't in school and fund healthcare interventions that could prevent the deaths of at least six million children every year [1].
Yet Oxfam's report shows that tax havens are only part of the problem. Countries across the world are slashing corporate tax bills as they compete for investment. The average corporate tax rate across G20 countries was 40 percent 25 years ago - today it is less than 30 percent [2]. The use of unproductive and wasteful tax incentives is also ballooning - particularly in the developing world. For example, tax incentives cost Kenya $1.1 billion a year - almost double their entire national health budget [3].
When corporate tax bills are cut, governments balance their books by reducing public spending or by raising taxes such as VAT, which fall disproportionately on poor people. For example, a 0.8 percent cut in corporate tax rates across OECD countries between 2007 and 2014 was partially offset by a 1.5 percent increase in the average standard VAT rate between 2008 and 2015 [4].
"There are no winners in the race to the bottom on corporate tax. Ordinary people - particularly the poorest - are paying the price for this reckless competition through increases in personal taxes and cuts to essential services, such as healthcare and education. Governments must work together to stop this crazy race to the bottom on corporate tax and ensure companies pay their fair share," said Berkhout.
Oxfam is calling for all governments to work together to stop tax dodging and the race to the bottom on corporate tax:
- Stop unfair and unproductive tax incentives and work together to set corporate tax at a level that is fair, progressive and contributes to the collective good
- Ensure tax blacklists are based on objective, comprehensive criteria including whether or not a country offers zero rates of corporate tax;
- Improve tax transparency by requiring all multinational companies to publish financial reports for every country in which they operate, so it is clear what taxes companies are paying and where.
Notes to editors
Download a copy of the report, 'Tax Battles: the dangerous race to the bottom on corporate tax.'
A methodology document which outlines how Oxfam compiled the list of the world's worst tax havens is also available.
The Lux Leaks whistleblowers appeal trial begins in Luxembourg on Monday 12 December. Antoine Deltour and his co-defendants exposed tax deals negotiated by Luxembourg tax authorities that enabled multinational companies to dodge millions of dollars in taxes. Oxfam is calling for whistleblowers to be protected - not prosecuted. Luxembourg is the 7th worst corporate tax haven.
Both Europe and the G20 are committed to introducing tax haven blacklists to clamp down on corporate tax dodging. However a failure to use objective and comprehensive criteria to compile the lists means many of the world's worst corporate tax havens are unlikely to be listed. EU blacklist criteria may not include a zero percent corporate tax rate which would mean that Bermuda, the world's worst tax haven, could escape the list. It is also clear no European country will feature despite Oxfam's analysis indicating that Ireland, the Netherlands, Luxembourg, and Cyprus are among the world's worst corporate tax havens. The G20 blacklist will be weaker still as it only looks at criteria related to financial transparency
[1] Tax dodging costs developing countries $100 billion a year - UNCTAD World Investment Report (2016). Total annual domestic financing gap to achieve universal pre-primary, primary and secondary education in low and low middle income countries is $39 billion per year - Education for All Global Monitoring Report(July 2015). There are 124 million children out of school - UNESCO Data. $32 billion would fund the key healthcare to save the lives of 6 million children across the world each year - The Lancet (April 2014).
[2] 'G20 Corporation Tax Ranking' Oxford University centre for business taxation'
[3] Corporate tax incentives are estimated to cost Kenya around $US1.1 billion per year or KShs 100 billion - Tax Justice Network Africa and Action Aid International report: Tax Incentives in East Africa. Kenya's health budget for 2015/16 was KShs 60 billion or US$591 million dollars - IBP Analysis of Kenya Budget Policy Statement (2016).
[4] OECD Revenue Statistics (2015)
Oxfam International is a global movement of people who are fighting inequality to end poverty and injustice. We are working across regions in about 70 countries, with thousands of partners, and allies, supporting communities to build better lives for themselves, grow resilience and protect lives and livelihoods also in times of crisis.
LATEST NEWS
Republicans Funded by Arms Industry Fume Over Biden Threat to Withhold Bombs From Israel
"What did we do after we were attacked in Pearl Harbor?" asked Sen. Lindsey Graham. "We dropped two nuclear weapons on two Japanese cities."
May 09, 2024
Congressional Republicans funded by the arms industry lashed out Wednesday over U.S. President Joe Biden's belated threat to withhold American weaponry from Israel if it launches a full-scale ground invasion of the Gaza city of Rafah, which is currently facing a humanitarian nightmare.
Sen. Lindsey Graham (R-S.C.), who received hundreds of thousands of dollars in campaign donations from pro-Israel interests and the weapons industry during his 2020 reelection campaign, declared that Biden's threat "put our friends in Israel in a box."
"What did we do after we were attacked in Pearl Harbor?" Graham, who previously encouraged Israel to "level" Gaza, said in a Fox News appearance late Wednesday. "We dropped two nuclear weapons on two Japanese cities... What is Joe Biden doing? He's making it impossible for allies throughout the world to trust us, he's making it hard on Israel to win."
Lindsey Graham: What do we do after we were attacked in Pearl Harbor? We dropped nuclear weapons on Japanese cities pic.twitter.com/kh7RU4flDw
— Acyn (@Acyn) May 9, 2024
Sen. Tom Cotton (R-Ark.) echoed Graham, falsely claiming that Biden has "imposed an arms embargo on Israel" and endorsed "a Hamas victory against Israel." Lockheed Martin, one of the world's biggest weapons manufacturers and a major beneficiary of Israel's war on Gaza, was the fourth-largest contributor to Cotton's campaign committee in 2020, the last time the senator ran for reelection.
The notion that Biden's threat to withhold future weapons deliveries to Israel undercuts the country's ability to assail Gaza was contradicted by a U.S. official who toldThe Washington Post that "the Israeli military has enough weapons supplied by the U.S. and other partners to conduct the Rafah operation if it chooses to cast aside U.S. objections."
Earlier this week, numerous media outlets reported that the Biden administration opted to delay a shipment of thousands of Boeing-made bombs over concerns about Israel's impending assault on Rafah. On Tuesday, Israeli ground forces entered Rafah and seized control of the city's border crossing with Egypt, imperiling humanitarian aid operations there.
Biden, who has approved more than 100 weapons sales to Israel and billions of dollars in additional aid since the October 7 Hamas-led attack, falsely said Wednesday that Israeli forces "haven't gone in Rafah yet," raising questions over the practical implications of his threat to withhold U.S. weapons in the case of a ground invasion.
But Republicans nevertheless fumed over Biden's approach, showing no concern for the humanitarian catastrophe that Israel's military—armed to the teeth with American weapons—has inflicted on Gaza.
In a letter to the president on Wednesday, House Speaker Mike Johnson (R-La.) and Senate Minority Leader Mitch McConnell (R-Ky.)—both major recipients of arms industry cash throughout their careers—wrote that delaying weapons deliveries "risks emboldening Israel's enemies and undermining the trust that other allies and partners have in the United States."
Johnson and McConnell, along with most congressional Democrats, supported a sprawling foreign aid package last month that authorized around $17 billion in military assistance for Israel. Reutersreported that Lockheed Martin and RTX—formerly Raytheon—both "stand to profit" from the measure.
Raytheon's PAC donated $18,500 to McConnell's 2020 reelection campaign.
Contrary to the position of congressional Republicans, progressive foreign policy analysts and anti-war organizations said Biden would be adhering to U.S. law if he halts weapons deliveries to Israel. Section 620I of the Foreign Assistance Act of 1961 prohibits U.S. military assistance to any country that is impeding the provision of American humanitarian aid—something Israel has done repeatedly.
"Enforcing our laws and making clear that the U.S. will not transfer offensive weapons to support a disastrous military operation that endangers millions of Palestinians throughout Gaza is vital," Sara Haghdoosti, executive director of Win Without War, said in a statement Wednesday.
"U.S. law gives the president ample power to ensure that no more U.S. arms go to [Israeli Prime Minister Benjamin] Netanyahu's brutal war in Gaza," said Haghdoosti. "With a crucial cease-fire deal within reach, added pressure from the Biden administration can help end this war and create a path to a sustainable peace for people in Israel and Palestine. We once again urge the president to use every tool available to him to secure a cease-fire in Gaza and the release of all hostages."
Keep ReadingShow Less
Biden 'Moving the Goal Post' With Threat to Withhold Bombs From Israel
"Now Israel has a green light to destroy Rafah in slow motion," said one critic.
May 08, 2024
While some Palestine defenders on Wednesday welcomed U.S. President Joe Biden's threat to withhold bombs and artillery shells from Israel if it launches a major invasion of Rafah, critics noted that an invasion is already underway and accused the American leader of walking back a previous "red line" warning against an Israeli assault on the southern Gaza city.
Biden said for the first time that he'll stop sending bombs, artillery shells, and other arms to Israel if Prime Minister Benjamin Netanyahu orders a major invasion of Rafah, where more than a million Palestinians forcibly displaced from other parts of the embattled Gaza Strip are sheltering alongside around 280,000 local residents.
Referring to Israel's use of U.S.-supplied 2,000-pound bombs—which can destroy an entire city block and have been used in some of the war's worst atrocities—Biden toldCNN's Erin Burnett that "civilians have been killed in Gaza as a consequence of those bombs and other ways in which they go after population centers."
Even the U.S. military—which has killed more foreign civilians than any other armed force on the planet since the end of World War II—won't use 2,000-pound bombs in urban areas. But Israel does, including when it launched a strike to assassinate a single Hamas commander by dropping the munitions on the Jabalia refugee camp last October, killing more than 120 civilians.
"If they go into Rafah, I'm not supplying the weapons that have been used historically to deal with Rafah, to deal with the cities," Biden said Wednesday.
Israeli forces have already gone into Rafah, and it was reported Tuesday that Biden was taking the unusual step of delaying shipments of two types of Boeing-made bombs to Israel to send a message to the country's far-right government. It was, however, a mixed message, as the president also earlier in the day reaffirmed his support for Israel's war on Gaza, which the International Court of Justice said is "plausibly" genocidal in a preliminary ruling in January.
Critics noted the shifting and subjective language used by Biden—who previously said that any Israeli invasion of Rafah would constitute a "red line" resulting in unspecified consequences.
"He said invading Rafah was a red line. Israel invaded Rafah anyway, bombing buildings, burning and crushing children to death," political analyst Omar Baddar said on social media. "Biden is now moving the goal post by adding a completely subjective descriptor: 'Major.' Now Israel has a green light to destroy Rafah in slow motion."
During the course of the seven-month Israeli assault on Gaza—which has killed, maimed, or left missing more than 124,000 Palestinians—Biden has said Israel has killed "too many civilians" with its "indiscriminate bombing," even as he's pushed for more and more military aid for the key ally.
Wednesday's interview came on the heels of Biden's approval of a $14.3 billion emergency military aid package to Israel, multiple moves to sidestep Congress to fast-track armed assistance, nearly $4 billion in previously authorized annual military aid, and diplomatic cover in the form of several United Nations Security Council vetoes.
Reporting that the Biden administration will delay a highly anticipated report on whether Israel is using U.S. military aid in compliance with international law also drew backlash Tuesday from human rights advocates.
Referring to Israel's U.S.-funded anti-missile system, Biden continued his supportive rhetoric during Wednesday's CNN interview, telling Burnett that "we're going to continue to make sure Israel is secure in terms of Iron Dome and their ability to respond to attacks."
But the president added that Israel's use of devastating weaponry against civilians is "just wrong," and that "we're not going to supply the weapons and artillery shells."
Some peace groups welcomed Biden's threat to withhold bombs and artillery shells from Israel, even while urging him to do more to stop his ally's genocidal onslaught.
"Biden's statement is as necessary as it is over overdue," Jewish Voice for Peace executive director Stefanie Fox said in a statement. "The U.S. already bears responsibility for months of catastrophic devastation: The nearly 40,000 Palestinians that the Israeli military has killed, the two million Palestinians being intentionally brought to the brink of famine, the decimation of all universities and almost every hospital in Gaza."
"Today's statement shows that Biden can no longer ignore the will of the majority of Americans who want a permanent cease-fire, release of all hostages, and an end to U.S. complicity in Israeli war crimes," Fox added.
Keep ReadingShow Less
House Dems Save 'MAGA Mike' Johnson From Marjorie Taylor Greene Ouster
"The GOP chaos caucus continues to do nothing for the American people and instead waste time infighting," said Rep. Pramila Jayapal, who did not support saving the far-right leader.
May 08, 2024
The majority of Democrats and Republicans in the U.S. House of Representatives on Wednesday saved far-right Speaker Mike Johnson from Rep. Marjorie Taylor Greene's attempt to oust him after less than seven months in the leadership position.
Johnson's (R-La.) election to the role in October—following the ouster of former Speaker Kevin McCarthy (R-Calif.), who then left Congress early—was seen as a signal of the MAGA flank's hold on the Republican Party. However, since then he has faced criticism from Greene (R-Ga.) and others for, among other things, not shutting down the government.
Greene delivered on her threatened motion to vacate—provoking boos from fellow lawmakers—after meeting with Johnson for hours on Monday and Tuesday. The final vote to table her resolution was 359-43, with 196 Republicans and 163 Democrats backing the far-right speaker. Seven Democrats voted present and 21 lawmakers did not vote.
Ten Republicans joined Greene in trying to give Johnson the boot: Reps. Andy Biggs (Ariz.), Eric Burlison (Mo.), Eli Crane (Ariz.), Warren Davidson (Ohio), Paul Gosar (Ariz.), Thomas Massie (Ky.), Alex Mooney (W.Va.), Barry Moore (Ala.), Chip Roy (Texas), and Victoria Spartz (Ind.).
Addressing the position of most Democrats, House Minority Leader Hakeem Jeffries (N.Y.) said in a statement:
Our decision to stop Rep. Marjorie Taylor Greene from plunging the House of Representatives and the country into further chaos is rooted in our commitment to solving problems for everyday Americans in a bipartisan manner. We need more common sense and less chaos in Washington, D.C.
Marjorie Taylor Greene and the extreme MAGA Republicans are chaos agents. House Democrats are change agents. We will continue to govern in a reasonable, responsible, and results-oriented manner and to put people over politics all day and every day.
Some of the 32 Democrats who supported ousting Johnson framed the vote as proof that—in the words of Rep. Maxwell Alejandro Frost (Fla.)—the "GOP really can't govern" and the "chaos caucus is on display."
Congresswoman Pramila Jayapal (D-Wash.) similarly declared on social media that "the GOP chaos caucus continues to do nothing for the American people and instead waste time infighting."
"Speaker Johnson organized an amicus brief effort to overturn the 2020 election. He opposes abortion rights, trans rights, and voting rights," Jayapal also said. "That's why I did not vote to save his speakership."
Rep. Gerry Connolly (D-Va.) also explained his vote on social media, saying: "Mike Johnson is the most ideological, right-wing speaker since the 1830s. His views and values are directly antithetical to mine. He stands for everything we, as freedom-loving Democrats, proudly stand against. I will never vote to keep him in that chair."
Congressman Mark Pocan (D-Wis.) was one of the members who voted present, which does not count for or against passage.
"Did I vote with the extremist white Christian nationalist who called a motion to vacate the speakership or did I vote to save the extremist homophobic Christian nationalist speaker to keep him in office?" Pocan said. "Neither. I voted 'present' on this sideshow."
Keep ReadingShow Less
Most Popular