(Ecofin Agency) – The International NGO Tax Justice Network has just published its Corporate Tax Haven Index for 2021. The document lists the jurisdictions that contribute most to multinational corporations underpaying corporate tax.
In this issue, several of Africa’s major trading partners appear in the top 20 on the international market. Switzerland, which ranks fifth in the index, is also the fifth largest customer on the African continent, according to the International Trade Center.
British territories dominate the Tax Haven Index. The United Kingdom, Africa’s seventh largest partner, came in 13th. Three jurisdictions under his roof (Cayman Islands, Virgin Islands and Bermuda) top the list.
The member countries of the Organization for Economic Co-operation and Development (OECD) account for 68% of the high-risk countries worldwide.
This bi-annual ranking is published at a time when an international campaign is running to give Africa, which is excluded from the international capital market, the opportunity to mobilize resources to fund its recovery from Covid-19 or to purchase vaccines finance that are sold to it at three times the price of other industrialized countries.
In a report released in October 2020, the United Nations Conference on Trade and Development (UNCTAD) said Africa was losing $ 88.6 billion due to wrong bills in international trade. The Tax Justice Network, in its report on the state of tax justice in the world, said the continent was losing up to $ 23.2 billion to tax evasion by multinational corporations.
Rankings such as those on tax havens for multinational corporations provide insights into the jurisdictions where these financial resources are readily available and which have been illegally removed from countries in need of them.