Netherlands and UK are Biggest Channels for Corporate Tax Avoidance

The Netherlands and U.K. account for almost 40% of corporate and investment tax havens for companies throughout the world. Multinational Enterprises (MNEs) avoid paying roughly $49 billion-$205 billion of taxes in the E.U. and at least $130 billion in the U.S.

Out of the 24 offshore financial centers, 18 are current or past colonies to the U.K. such as the Cayman Islands, Bermuda, British Virgin Islands and Jersey. Danish off shore tax havens specialize in providing holding companies, while the U.K. provides head offices and fund management companies with tax free havens.

In the U.S. and E.U. alone, around half a trillion dollars is wasted on public needs due to the greed of companies who would rather find loopholes than pay their part to society. There needs to be a joint effort by the U.S. and E.U. to tackle companies who travel elsewhere to avoid paying taxes.

Source: The Guardian

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