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Poorer nations need say in latest international tax clampdown

The latest international clampdown on tax evasion must involve both rich and poor countries if it is to stop criminals hiding billions from the taxman, campaigners say today.

The new briefing, Automatic For The People, was launched as representatives from over 100 countries gather in Indonesia this week (21-22 November) for the OECD Global Forum on Tax and Transparency.

Industrialised countries’ governments are setting up a new global system for automatically sharing information about foreign taxpayers. However, tax justice campaigners fear that little thought has been given to how it can work for developing countries.

Maria Villanueva, Oxfam policy advisor, said: "Without poor countries’ governments having a say on how a new tax system can work for them from the start, there’s a real danger the world’s poorest people will continue to be hit hardest by tax evasion.

"Tax evaders are already robbing poor countries of billions that could pay for vital public services, such as hospitals, schools and roads. Rich countries, whose banks are facilitating tax evasion, have a duty to help change the status quo, instead of continuing to profit from it."

Joseph Stead, senior economic justice adviser at Christian Aid, added: ‘If the new system is set up in ways which make it impossible for poor countries to participate, or benefit from it, then some of them may follow the logic of staying outside the system.

"And let us be honest – there is a logic. Countries whose governments do not share information about who owns what will – like other tax havens - attract dirty money from people and companies wanting to conceal it from the countries where they live and work.

"But if more countries become tax havens, that can only undermine the effectiveness of information-sharing between other governments. Far better to ensure now that the new information exchange system works for all countries, rich and poor."


Picture credit:  © Leopollo | Dreamstime Stock Photos

Global | Tax Evasion

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