Global Tax Havens: A $4.7 Trillion Threat to Countries in the Next Decade
Countries worldwide could lose an estimated $4.7 trillion in revenue over the next decade due to legal tax avoidance, illegal tax evasion, and creative accounting, according to the Tax Justice Network. The majority of the revenue loss is attributed to multinational corporations engaging in profit-shifting to low-tax jurisdictions, while the remaining portion is due to wealthy individuals benefiting from financial secrecy. The report highlights that both high-income and low-income countries experience revenue losses, but the impact is more severe for lower income countries. The Tax Justice Network supports moving global tax rulemaking authority from the OECD to the United Nations to address the issue of tax abuse.