Thursday, November 28, 2019

The Tax Haven Atlas

The British Virgin Islands, Bermuda and the Cayman Islands have been named the top three corporate tax havens in 2019. These three countries are judged by the Tax Justice Network to be the countries who have most helped multinational corporations hide their money and avoid paying their way around the world.

The Corporate Tax Haven Index 2019 is an interactive map of the Tax Justice Network's rankings of the world’s biggest tax havens. These are the countries that the Tax Justice Network believe are most responsible in helping multinational corporations avoid paying tax and eroding the tax revenues of countries around the world.

A country's Tax Haven Index rank is determined from a combination of two different scores. One score is awarded based on how much a country has eroded its own laws in order to attract corporations looking to avoid paying tax. The other score is based on how much financial activity there is from multinational corporations in a country.

Nearly 10% of the world’s wealth is hidden in offshore tax havens by a few individuals. Multinational companies hide nearly 40% of their profits in these same tax havens. You can find out how much each country around the world is losing in corporate tax revenue on the Missing Profits interactive map. Losses that you and I have to pay for in our own tax bills.

Researchers from the University of California and the University of Copenhagen have estimated the amount of money hidden in tax havens by multinational companies and how much each country loses in tax revenue from this tax avoidance. Countries on the Missing Profits interactive map are colored to show the percentage of tax revenue lost because of money hidden in tax havens. If you click on a country on a map you can find out in which offshore tax havens the corporate tax revenue loss ends up. For example the United States loses 17% of corporate tax revenue because of corporate tax avoidance.

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