A report published by the charity non-governmental organization OXFAM exposes the worst offenders in the ‘race to the bottom on corporate tax.’ Luxembourg, Ireland, Cyprus, and the Netherlands are among the world’s 10 worst tax havens, despite an ongoing EU crackdown on tax avoidance and profit shifting across the bloc.
The findings come in a report by the charity Oxfam, which aims to expose the worst offenders in the “global race to the bottom on corporate tax.”
The full ranking of the world’s top offenders is:
(1) Bermuda; (2) the Cayman Islands; (3) the Netherlands; (4) Switzerland; (5) Singapore; (6) Ireland; (7) Luxembourg; (8) Curaçao; (9) Hong Kong; (10) Cyprus; (11) Bahamas; (12) Jersey; (13) Barbados; (14) Mauritius; and (15) the British Virgin Islands.
The listing criteria was based on countries with the “most damaging tax policies,” such as zero corporate tax rates, which ultimately harm the average taxpayers, the NGO said.
“When corporate tax bills are cut, governments balance their books by reducing public spending or by raising taxes such as [value-added tax], which fall disproportionately on poor people,” Oxfam said in a statement.
“Luxembourg, Ireland, and the Netherlands are already under pressure from the European Commission, which has accused all three of offering sweetheart deals to international companies.”
Ireland is currently under instruction from the Commission to claw back €13 billion from U.S. tech firm Apple, which in 2014 benefited from an Irish corporate tax rate of 0.005 percent.
Meanwhile, Luxembourg and the Netherlands are respectively accused of offering Fiat Chrysler Automobiles and Starbucks “illegal” tax deals, the Commission said last year.
All three countries oppose the Commission’s conclusions and are individually committed to fight the decisions.
Oxfam’s research will also raise questions about just how effective the Commission’s crackdown on anti-tax avoidance can be. (full article here)
Luxembourg? Netherlands? Jean-Claude? Jeroen? Is that you, guys?
As a German follower noted on Twitter
@J_Dijsselbloem should clean up his Augeas stable before lecturing nations like #Greece about tax compliance?
I assume, their tax evasion is legal as it creates jobs….
Question: is that Juncker from the EU Commission the same who implemented the tax havens deal in Luxembourg? Of course, he is. Just a rhetorical joke.
A joke is also the efforts by The Netherlands to snitch to Greek authorities the Greek citizens who owned yachts and have them run under Dutch flag, have them anchored in Holland and …and.. and…