Forty percent of today’s cross-border direct investments reported by the IMF – $18 trillion in value – are being booked in just 10 countries that offer corporate tax rates of 3 percent or less.
An independent international research organization, The Corporate Tax Haven Index, has published a report https://www.corporatetaxhavenindex.org/introduction/cthi-2019-results , which was named the United Kingdom and a handful of OECD countries as the jurisdictions most responsible for the breakdown of the global corporate tax system. The United Kingdom, says the report, is mostly responsible through its controlled network of satellite jurisdictions. These countries undermine the ability of governments across the world to meaningfully tax multinational corporations. Over $500 billion in corporate tax is dodged each year globally by multinational corporations. Forty per cent of today’s cross-border direct investments reported by the IMF – $18 trillion in value – are being booked in just 10 countries that offer corporate tax rates of 3 percent or less.
The Corporate Tax Haven ranks countries based on the degree to which it enables corporate tax avoidance. Each country’s corporate tax haven score is then combined with the scale of corporate activity in the country to determine the share of global corporate activity put at risk of tax avoidance by the country. The greater the share of global corporate activity the higher it ranks on the index.