Taxation and the poor

Posted by muriel / on 03/21/2009 / 0 Comments

Tax havens used by nationals deprive poor nations of billions in taxes. (Oxfam)

Developing countries miss out on tax receipts worth more than the billions of dollars in foreign aid they receive because their own nationals put cash in offshore tax havens, British charity Oxfam said.

Developing countries lose as much as $180 billion in taxes a year, a study for the charity showed.

People from developing countries hold more than $9 trillion abroad and capital flight is increasing by $300-450 billion per year, according to the study for Oxfam by a former chief economist at management consultancy McKinsey and Co.

"Reform of tax havens would be an easy win for our leaders that would benefit ordinary people at home and abroad alike," Kristy Hughes, Oxfam's head of policy, said in a statement, noting that $24.3 billion would provide each child a school place.

Combating offshore tax evasion is on the agenda for the April 2 G20 group of developed and emerging countries in London.

The global financial crisis has seen cash-strapped Western governments taking tougher steps against tax evaders and the crisis also looks set to crimp development aid.

Source: Reuters

The Monterrey Consensus

In 2002, the United Nations convened a meeting of heads of state at Monterrey, Mexico to discuss plans for financing development in the developing world. The resulting document is called the Monterrey Consensus. The United Nations treats it as a foundation document on many matters, including tax policy for development.

Taxation and Development Website

This is a very interesting website for all things, taxation, financing, and development.




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