Tax! It's a $492 billion offshore heist!
Tax Justice Network's 'State of Tax Justice 2024' report was made public on Tuesday. It has dropped like a grenade into the neatly-raked zen garden of global finance. The report reveals a staggering $492 bn lost annually to global tax- dodging that's lounging in secret offshore accounts, funding billionaire jets, yachts and even booking for future intergalactic travel.
This is a tale of two kinds of tax-avoiders: one, corporate; the other, personal. Two-thirds of the total $347.6 bn comes from MNCs playing an elaborate game of offshore hopscotch to underpay taxes. The remaining third, $144.8 bn, stems from HNIs hiding their treasure chests in tax havens.
So, who's enabling this grand evasion? Eight countries, the 'Elite Eight', are at the forefront: Australia, Canada, Israel, Japan, New Zealand, South Korea, Britain and the US. Together, these economic heavyweights are responsible for nearly half of global tax abuse losses.
Ironically, the Elite Eight not only enable tax abuse but also suffer from it, losing $177 bn annually to tax-dodging. And still they vehemently oppose the proposed UN Tax Convention, which aims to create an inclusive global tax system by shifting international tax rule-making from OECD to UN, giving all countries, especially developing ones, a greater voice.
In the August 2024 UN Tax Convention vote, 44 countries abstained — countries that are collectively losing $189 bn annually to tax abuse. Meanwhile, 110 countries, including India, voted in its favour, even as they still lose $123 bn
