Oxfam: Most of World Bank's Private Investments Linked to Tax Havens

[eridani]

http://readersupportednews.org/news-section2/318-66/36274-oxfam-most-of-world-banks-private-investments-linked-to-tax-havens

As the Panama Papers continue to shed light on the widespread issue of tax evasion around the globe, Oxfam has revealed that the World Bank is also complicit in promoting tax havens with the majority of its private investments going to companies with offshore accounts, according to a new report released Monday.

"Tax dodging by multinational corporations alone costs developing countries at least US$100 billion every year, and corporate investment in tax havens almost quadrupled between 2000 and 2014," Oxfam said in a recent report. "Furthermore, it is estimated that globally a total of US$7.6 trillion of individuals’ wealth sits offshore. If tax were paid on the income that this wealth generates, an extra US$190 billion would be available to governments every year."

Out of the 68 companies in Sub-Saharan Africa that the World Bank’s private lending arm the International Finance Corporation lent money to in 2015, 51 use tax havens, accounting for 84 percent of IFC annual investment in the region.

“It doesn’t make sense for the World Bank Group to spend money encouraging companies to invest in ‘development’ while turning a blind eye to the fact that these companies could be cheating poor countries out of tax revenues that are needed to fight poverty and inequality,” said Oxfam tax policy advisor Susana Ruiz in a statement on Monday.

In just five years, IFC, which according to its website is “the largest development institution focused exclusively on the private sector in developing countries,” has more than doubled its investment in companies that use tax havens. In 2015, the amount was US$2.87 billion, up from US$1.20 billion in 2010, according to Oxfam.

[trudyco]

1. I had heard the world bank was sleazy

Sad to hear it's gotten worse (or at least more inept). Good for Oxfam to shine a light on this! Thanks for sharing.