Levelling up: ensuring a fairer share of corporate tax for developing countries
This new report explores how developing countries collect much less corporate tax than they could as a result or corporate tax avoidance– revenue that could help to pay for public services and the fight against poverty.
Corporate tax avoidance scandals around the world have underlined the extent to which some multinational companies have been able to slash their tax contributions, sometimes close to zero. Developing countries, where most of the world’s poorest people live, are particularly vulnerable to corporate tax dodging; yet they badly need tax revenues to provide public services and are more dependent on corporate taxes than developed countries.
Developing countries can’t wait for global agreement. Some have taken action to protect their corporate tax revenues. Others could do the same. But in the long term, a new global deal is needed to curb tax competition between countries and tackle tax avoidance.