CAPITAL FLIGHT OF taxes from developing nations costs Europe €1 trillion a year and the developing world nearly €800 billion.

That is the opinion of a new report by the European Network on Debt and Development.

The cross-European report ‘Giving with one hand and taking with the other’ found that a lack of governmental action on tax compliance had led to a loss of €1 trillion to the exchequers of 13 EU countries.

Of the countries surveyed, none supported the use of the UN as the international policy makers on tax policy. The OECD, which is populated by developed nations, is preferred.

The report accuses governments of failing to demand transparency from businesses, of providing scant ownership details and of making data unavailable.

Sorley McCaughey from Christian Aid Ireland, one of two Irish groups involved in the report says Ireland is part of the problem.

“The Irish Government’s failure to take adequate steps to ensure multinational companies pay their fair share of tax is costing developing countries billions of euro each year, far more than they receive in aid.

We call on the Irish Government to support urgently needed global measures to compel greater tax transparency from companies and individuals and to ensure that developing countries are included in setting new global tax rules.

The report can be read here.

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