![]() ![]() A highly tax aggressive jurisdiction that facilitates a small volume of financial activity from multinational corporations, like Anguilla (ranked 39th), will rank below a less tax aggressive jurisdiction that is a major host of multinational corporations’ financial activity, like Belgium (ranked 16th).Ĭayman threat continues its relentless riseīritish Overseas Territory Cayman has moved up from third to second on the Corporate Tax Haven Index since the last edition of the index 2019. The country’s haven score is then combined with the volume of financial activity conducted in the country by multinational corporations to calculate how much cross-border corporate tax abuse is facilitated by the country.Ī higher rank on the index does not necessarily mean a jurisdiction’s corporate tax laws are more aggressive, but rather that the jurisdiction in practice plays a bigger role globally in enabling the profit shifting that costs countries billions in lost tax every year. The index grades each country’s tax and legal system with a “haven score” out of 100 where a zero represents no scope for corporate tax abuse and a 100 is unrestrained scope for corporate tax abuse. ![]() The Corporate Tax Haven Index ranks each country based on how intensely the country’s tax and financial systems allow multinational corporations to shift profit out of the countries where they do business and consequently pay less tax than they should there. Cayman Islands (British Overseas Territory). ![]() British Virgin Islands (British Overseas Territory).The world’s top 10 biggest enablers of global corporate tax abuse today are: These are, in descending order, the British Virgin Islands, Cayman and Bermuda – three British Overseas Territories where the UK government has full powers to impose or veto lawmaking and where power to appoint key government officials rests with the British Crown – the Netherlands, Switzerland and Luxembourg. The 2021 edition of the Tax Justice Network’s biennial Corporate Tax Haven Index sees OECD countries or their dependencies take up the top six spots on the ranking of the world’s greatest enablers of corporate tax abuse. Top 10 greatest enablers of corporate tax abuse risks Dr Dereje Alemayehu, executive coordinator of the Nobel Peace Prize-nominated 5 Global Alliance for Tax Justice, said “to trust the OECD in light of the index’s findings today is like trusting a pack of wolves to build a fence around your chicken coop.” Broken down, OECD countries are responsible for 39 per cent of the world’s corporate tax abuse risks and their dependencies – like the UK’s Crown Dependency Jersey and the Netherlands’ Aruba – are responsible for 29 per cent. In a further blow to deteriorating trust in the OECD group’s ability 3 to tackle the rampant global corporate tax abuse that costs the world $245 billion in lost corporate tax a year 4, the Corporate Tax Haven Index 2021 finds OECD countries and their dependencies to be responsible for 68 per cent of the world’s corporate tax abuse risks. Leading economists and campaigners from around the world are calling for OECD tax rules to be superseded by a more robust and globally inclusive process at the United Nations, beginning with a UN tax convention 2, to clamp down on global corporate tax abuse and raise the public funding urgently needed to address the economic toll of a pandemic now entering its second year. ![]() The index documents the ways in which global corporate tax rules set by the OECD 1, a membership organisation made up of high income countries and the world’s leading rule-maker on international tax, failed to detect and prevent corporate tax abuse enabled by the OECD’s own member countries – and in some cases, pushed countries to rollback their tax transparency. A club of rich countries determining global rules on corporate tax are responsible for over two-thirds of global corporate tax abuse, reports the Corporate Tax Haven Index 2021, a ranking of countries most complicit in helping multinational corporations pay less tax than they are expected to. ![]()
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