DUBLIN: The revelations contained in the recent Paradise Papers leaks have reiterated the value of public transparency in identifying aggressive tax avoidance – and the need for reform to end these abuses once and for all. The veil of secrecy that exits in the world of global finance benefits no-one but tax dodgers.
The UN estimates that developing countries lose about $100 billion every year as a result of corporate tax avoidance, revenue that should provide comprehensive public services, such as healthcare and education, which help people to lift themselves out of extreme poverty and thrive.
Following the recent emergency Commons debate on tax avoidance and evasion, with MPs from all sides calling for action to improve transparency, it is clear that the time has come for Britain to ensure its overseas territories rip away the veils of secrecy which hide tax dodgers from public scrutiny.
Crown Dependencies should do the same. Tax avoidance continues to deprive the UK and developing countries of vital funds that could be spent fighting poverty so the huge human cost of inaction far outweighs any reasons for further delay.
Developing countries benefit when more detailed information about companies’ tax affairs are made public. It allows them to more easily identify instances where companies may be engaging in tax avoidance which is a serious issue for developing countries and an obstacle in their efforts to end poverty.
The British government should also prioritise new transparency rules to ensure that UK-based multinationals publish their tax payments in every country, with a commitment in the forthcoming budget to implement public country by country reporting by the end of 2019.
