Half of Investments Channeled Through Tax Havens

Each year many of the world’s developing nations lose out on billions of dollars through corporations’ use of tax havens, notes a report from ActionAid. Companies increasingly focus on tax reduction. According to the report, nearly half the money invested in some nations goes through tax havens, a move that ultimately costs the developing nations a sum triple the amount of annual aid. Developed nations lose out on revenues, too. ActionAid’s tax expert Mike Lewis carried out the research, focused on the UK, and suggests that "tax havens are one of the main obstacles in the fight against global poverty” and that “their secrecy and harmful tax regimes leach money out of developing countries that could be used to end hunger and provide hospitals, schools and clean water.” Additionally, the research showed that G8 members are responsible for nearly 40 percent of the tax havens worldwide. Some multinational firms refuse to rely on tax havens. The G8 meets in June and could call for tax reform and transparency. – YaleGlobal