Key Stats

  • More money is lost annually through corporate tax dodging in developing countries (at least $160bn) than is given in aid ($120 bn).
     
  • 350,000 child lives could be saved if this money stayed in country.
     
  • Sub-Saharan Africa lost USD 854 billion in illicit financial flows between 1970 and 2008, double the amount of Official Development Asssistance it received over that period. 
     
  • Transfer mispricing accounts for 65-70% of illict financial outflows from the world's Least Developed countries (LDCs).
     
  • It is estimated that $21 – $31 trillion of untaxed wealth is held in tax havens worldwide.
     
  • At least half of all world trade passes through tax havens.
     
  • Every $100 million recovered from tax dodging could fund full immunisations for four million children or provide water connections for 250,000 households.
     
  • 217,000 so called ‘post-box companies’ are registered as having an office at one single address at 1209 Orange St in Wilmington, Delaware in the USA. These companies take advantage of Delaware’s intentionally low company tax rates and avoid paying taxes in states and regions where they actually do their business.
     
  • The effective corporate tax rate in Jersey and the Cayman Islands is 0%

Quotes - Development and Tax Dodging

  • “It is a contradiction to support increased development assistance yet turn a blind eye to actions by multinationals and others that undermine the tax base of a developing country”.
    (South Africa’s Finance Minister, Trevor Manuel)
     
  • "It has always been one of the great ironies of international development that some of the poorest countries on earth have the greatest riches. Many African, Asian and South American nations have vast reserves of natural resources. So why don't they get more of the profits from exploiting them? ... the key problem is tax avoidance by international companies." 
    (Savior Mwambwa of the Centre for Trade Policy and Development in Zambia in an interview with the BBC 9 March 2012)
     
  • "I have made revenue collection a frontline institution because it is the one which can emancipate us from begging. If we can get about 22% of GDP we should not need to disturb anybody asking for aid; instead of coming here to bother you, give me this, give me this, I shall come here to greet you, to trade with you." 
    (President Yoweri Museveni of Uganda, that currently collects around 11% of its GDP in tax)