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Oxfam pinpoints world’s corporate tax havens

Bermuda, the Cayman Islands and the Netherlands are the top three corporate tax havens, according to the latest research published by Oxfam International.
The Head of the Hong Kong, Macau and Taiwan Programme for Oxfam, Kalina Tsang, voiced her thoughts on why governments should halt the abuse of tax havens by multinational corporations.
“They transfer profits to places with little or no economic activity and offer low or zero rates of corporate tax,” Tsang claimed.
The research uncovers that some of the worst culprits are countries with reasonable nominal corporate tax rates.
Following the aforementioned countries, Switzerland, Singapore, Ireland, Luxembourg, Curaçao, Hong Kong, Cyprus, the Bahamas, Jersey, Barbados, Mauritius and the British Virgin Islands are top the world’s tax havens, according to research compiled by the watchdog.
“To enhance transparency and management standards, Oxfam Hong Kong has been advocating the use of Environmental, Social and Governance criteria among listed companies,” said Tsang. “This includes publishing data on tax compliance and detailed tax information.”
According to calculations by the United Nations, at least US$100 billion (MOP799 billion) is being diverted from poor countries every year by multinational corporations via tax dodging activities.
The latest Oxfam research also reveals that countries across the globe are cutting corporate tax bills for investment competition.
The average corporate tax rate across G20 countries was 40 per cent 25 years ago whilst the rate is currently less than 30 per cent, according to data provided by Oxford University.
With the cut in corporate tax bills, governments seek to reduce public spending or increase taxes, such as VAT, to balance government expenses.