Inequality

  • The widening gap between the world’s richest and poorest people is tearing societies apart. Too many still toil in extreme poverty. In contrast, wealth is increasingly concentrated in the hands of a few, who can use it to capture disproportionate power to shape the future. The widening gap between the richest and poorest is damaging economies and pushing more people into poverty. There are practical ways to close the gap.

5 steps governments can take to prevent another Mauritius Leaks scandal

A 5-point plan to stop big corporations cheating poor countries out of billions of dollars in tax revenue, was published by Oxfam today in the wake of the Mauritius Leaks.

When multinational corporations and the super-rich use tax havens to dodge paying their fair share, it is ordinary people, and especially the poorest, who pay the price. The Mauritius Leaks show that tax havens continue not only to exist but to prosper, despite government promises to rein in tax dodging. Oxfam’s plan lists five steps governments can take to tackle tax avoidance and end the era of tax havens.

Jim Clarken, Oxfam Ireland’s Chief Executive, said: “Politicians could put a stop to tax scandals if they wanted to. Oxfam has listed five concrete solutions that would prevent another Mauritius Leaks scandal and ensure multinational corporations pay their fair share of tax wherever they do business. Developing countries can revise or void their tax treaties and introduce withholding taxes to better protect their tax revenue, and all governments – rich and poor – agree to set a global minimum effective tax rate on corporate profits.

“There is no time to waste. Developing countries lose an estimated $100 billion a year in tax revenue as a result of tax dodging by multinational corporations, and even more as a result of damaging tax competition between countries. This money is desperately needed to end hunger, tackle the climate crisis, and ensure all children have the chance of an education.”

Oxfam’s 5-point plan to build a fairer global tax system calls on governments to:

(1) Agree new global tax rules in the negotiations led by the OECD under the mandate of the G20 to ensure fair taxation of big corporations. This should include the introduction of a global minimum effective tax rate set at an ambitious level and applied at a country-by-country basis without exception. This would put a stop to the damaging tax competition between countries and remove the incentive for profit shifting – effectively putting tax havens out of business.

(2) Developing countries should not give away their taxing rights. Many treaties result in multinational companies not paying certain types of tax at all in any country. Rich countries have a responsibility in ensuring fair taxation with their investments and the projects they finance. Governments of developing countries can protect their tax base from erosion by revising or voiding their tax treaties, introducing withholding taxes and implementing strong tax anti-abuse rules.

(3) End corporate tax secrecy by ensuring all multinational companies publish financial reports for every country where they operate. The current OECD initiative on country-by-country reporting falls well short of the mark as it does not cover all multinational corporations and it does not require companies to make their financial reports publicly available. This means poor countries are unable to access the information to identify tax cheats. Stronger European proposals on public country-by-country reporting were due to be agreed this year but are being blocked by EU member states such as Ireland, Germany, and Luxembourg.

(4) Agree a global blacklist of tax havens based on comprehensive objective criteria and take strong countermeasures including sanctions to limit their use. Governments have yet to agree an objective global list of tax havens. A farcical OECD-G20 blacklist published in July 2017 features only Trinidad and Tobago. The more comprehensive European Union list omits European tax havens such as Ireland and the Netherlands.

(5) Strengthen global tax governance by creating a global tax body where all countries can work together on an equal footing to ensure the tax system works for everyone. The new round of global tax negotiations (BEPS 2.0) is a historic opportunity to put a stop to damaging tax competition and corporate tax avoidance, and to build a fairer tax system that works for the benefit of all people and not just a fortunate few. Even if the new round of global tax negotiations (BEPS 2.0) delivers positive results, a more inclusive tax body is required to oversee the global governance of international tax matters and strengthen international tax cooperation

ENDS

Oxfam experts are available for interview. Please contact:

Phillip Graham: phillip.graham@oxfam.org / +44 (0) 7841 102535

Alice Dawson-Lyons: alice.dawsonlyons@oxfam.org / +353 (0) 83 198 1869

NOTES TO EDITORS:

Download Oxfam's 5-point plan here.

G20 Finance Ministers discusstax reforms

 
G20 Finance Ministers are expected to give the green light to a new round of negotiations on international tax reforms at a meeting in Fukuoka, Japan on 8 - 9 June, 2019, in line with OECD recommendations issued in May. 
 
For the first time countries will debate proposals for fundamental reforms such as where a companies’ profits are taxed and whether to set a global minimum effective corporate tax rate.
 
Jim Clarken, Oxfam Ireland Chief Executive, said:
 
“This new round of global tax negotiations offers a unique chance to put a stop to corporate tax dodging and damaging tax competition. If they get it right this could mark the beginning of a new fairer tax era where poor countries are able to claim their fair share of corporate tax revenues – and release the funds they need to tackle poverty and inequality. Governments must not waste this opportunity.
 
“The UN has said that developing countries lose around $100 billion each year as a result of global corporate tax avoidance. This shortfall leaves developing countries without the revenue to provide the vital healthcare, education and infrastructure needed to tackle poverty and inequality.  Women and girls are most effected by the lack of these services, as recently highlighted by a European Parliament report on taxation policies and gender equality.
 
“If we look at Ireland, our corporate tax rate has attracted international investment that generates much-needed jobs and prosperity. However, the parallel system of tax loopholes needs to be reformed because of the knock-on effect that it has on some of the poorest communities in the world.
 
“A global consensus has seen efforts to reform the global tax system take place at the OECD, where Ireland also participates. G20 Finance Ministers need to take the opportunity this weekend to get behind reforms that will usher in a new corporate tax era.”
 
ENDS 
 
CONTACT: Nyle Lennon, nyle.lennon@oxfam.org,   083 197 5107.
 
Notes to editors
 
An Oxfam briefing note - 'Tax Revolution?' -  which provides more details on the negotiations and what is at stake is available on request.

Lorraine Keane and a host of fashion and entertainment stars launch fundraiser extravaganza FASHION RELIEF – now nationwide!

 

TV presenter rolls out events in Cork, Dublin and Galway in aid of Oxfam Ireland

TV presenter Lorraine Keane brought together Ireland’s favourite fashionable stars today to launch FASHION RELIEF 2019 as the fundraiser extravaganza goes nationwide in aid of Oxfam Ireland.

Keane teamed up with Miriam O’Callaghan, Maia Dunphy, Noel Cunningam, Mary Kennedy, James Patrice, Clémentine MacNeice, Joe Conlan, Triona McCarthy, Sarah McGovern, Laura Woods, Mo Kelly, Cathy O’Connor, Caroline Morahan, Teo Sutra and Joanne Northey to call on the public to join them at three FASHION RELIEF events across the country in 2019.

Following the success of the first fundraiser in Dublin in May 2018, events will now be held in Cork’s City Hall on Sunday 17 February, Dublin’s RDS on Sunday 10 March and Galway’s Galmont Hotel on Sunday 31 March.

Each event will offer people the unique opportunity to bag a bargain from the wardrobe of their style icon or beloved brand, boutique or designer, all while raising vital funds for Oxfam’s work in some of the world’s poorest countries.

With donations from stars like Saoirse Ronan, Vogue Williams, Dáithí Ó Sé, Mary Kennedy, Miriam O’Callaghan, Rob Kearney, Anna Geary, James Patrice and more – as well as event host Lorraine Keane – FASHION RELIEF is not-to-be-missed.

Attendees of each event will also enjoy two free fashion shows and get fashion advice and top tips from leading Irish stylists and social influencers on the day.

Lorraine Keane is calling on the Irish public to join her in Cork, Dublin and Galway: “We were blown away by the success of our first ever FASHION RELIEF in May 2018, including the incredible generosity we experienced from the Irish public, our corporate and media partners and designers, boutiques and brands across the country.

“This year, we’re determined to make it bigger and better – starting by taking the show on the road! We’re so excited to bring FASHION RELIEF back to Dublin’s RDS but also to fashion-savvy shoppers in Cork and Galway.

“Over the last few weeks, stock has been pouring in from a host of amazing designers, retailers and of course, celebrities and influencers. Now I’m calling on people across Dublin, Cork, Galway and beyond to join us on the day and bag yourself a bargain. By buying your ticket in advance, you’ll skip the queues and ensure you don’t miss any of the action, including two fabulous free fashion shows.

“If you want to do more, you could even donate your own pre-loved clothes and accessories for sale on the day, get your workplace on board to do a bigger donation drive, or volunteer to staff your own stall at the events – why not get some friends together and make a day of it?”

All profits will support Oxfam’s work in some of the world’s poorest countries, helping people to lift themselves out of poverty and thrive as well as saving lives when disaster strikes.

Keane continued: “In November 2018, I had the privilege of travelling to Ethiopia to see Oxfam’s work there and how the money raised through FASHION RELIEF could help people facing hunger and poverty. It was the most difficult part of this journey so far but also the most rewarding. I met a little five-year-old girl called Samia who, in the midst of the devastation surrounding her – hunger, disease, violence – beamed the most beautiful smile and reminded me of my own daughters. I met people who are lifting themselves out of poverty through innovative farming techniques and saw families forced to flee because of hunger, drought and conflict receive life-saving aid like clean, safe water.

“The are many reasons to join me at FASHION RELIEF but the most important is that we’ll be raising vital funds for Oxfam’s work across the world – funds that will help make sure children like Samia have the future they deserve. Get your ticket today and together, we’ll beat hunger and poverty for good.”

FASHION RELIEF 2019 will take place in:

  • City Hall, Cork on Sunday 17 February from 11am – 5pm
  • RDS, Dublin on Sunday 10 March from 11am – 5pm and
  • Galmont Hotel, Galway on Sunday 31 March from 11am – 5pm

Tickets for each event are just €10 and available at www.fashionrelief.ie. For more information on tickets, organising a donation drive or volunteering on the day, email IRL-fashionrelief@oxfam.org or call 01 672 7662.

ENDS

CONTACT: Interviews, images – including of Lorraine Keane’s trip to Ethiopia – and more information available on request contact Alice Dawson-Lyons on  alice.dawsonlyons@oxfam.org / +353 (0) 83 198 1869

 

 

In 2018, 43 people owned the same wealth as half the world – this year, 26 do.

In 2018, 43 people owned the same wealth as half the world – this year, 26 do.

A report released by Oxfam this week highlights that our current global economy is rewarding those at the top - while hundreds of millions of people living in poverty are getting poorer. Last year, the 3.8 billion people who make up the poorest half of the world saw their wealth decline by 11 percent while billionaires’ fortunes rose by almost the same amount. 
 
One of the main drivers of inequality is the failure of governments to clamp down on tax dodging by big businesses and wealthy individuals and ensure everyone is paying their fair share. Tax dodging by corporations and the rich is costing poor countries $170 billion a year. This means less funds for vital public services like healthcare and education, which are key to reducing inequality and helping people to build better lives for themselves. 
 

This just doesn't make sense

 
This human cost of inequality can no longer be ignored. Every day, 262 million children will not go to school and almost 10,000 people will die because they cannot access healthcare.
 
 
Nellie Kumambala, a secondary school teacher from Lumbadzi, Malawi tells us her experience of fighting inequality. “My father inspired my sisters and me to become teachers. I’ve taught at the community secondary school for my area for 19 years. Our children come from very poor families. Many walk long distances to get here. Many come with empty stomachs. We have a problem of too few textbooks, dilapidated classrooms and teaching materials. 
 
"Over the years, I have seen so many girls and boys who score highly despite coming from poor backgrounds. I remember Chimwemwe Gabisa – she was brilliant at mathematics, the best I have taught. She finished secondary school but could not proceed to college for lack of funds." 
 
The private schools in the city, for children from rich families, have very good facilities. It does not seem right that it is so much harder for children in a government school to be educated. I pay tax every month on my little salary. I don’t understand why the people that have everything are failing to pay their taxes. 
 
With more money a lot could be done at our school. We could provide students with breakfast. We could provide them with textbooks and basic necessities like school uniforms and exercise books. At least this would give them a better chance in life.”
 
Rising inequality is preventing us from beating poverty for good – but it doesn’t have to be this way. There is enough wealth in the world to provide everyone with a fair chance in life.
 
Dedicated teachers like Nellie are the lifeblood of great public services that benefit the poorest. Share her story to help fight inequality and beat poverty.
 
 

Billionaires’ wealth grows by €2.2billion/£1.9billion per day as half the world lives on €5/£5 per day

Almost half the world’s population live on less than €5/£5 per day while the wealth of the world’s billionaires increased by €2.2billion/£1.9billion per day in 2018 alone, reveals a new report from Oxfam today. 
 
 
The report – Public Good or Private Wealth? – highlights how the global economy rewards those at the top while people living in poverty get poorer. Last year, the 3.8 billion people who make up the poorest half of the world saw their wealth decline by 11 percent while billionaires’ fortunes rose by almost the same amount (12 percent). 
 
As political and business leaders gather at the World Economic Forum in Davos this week, Oxfam is calling on governments to address this rising inequality by tackling tax avoidance by corporates and wealthy individuals and providing quality, free universal public services that are key to reducing it. 
 
Jim Clarken, Oxfam Ireland Chief Executive, said: “Halving extreme poverty is one of our greatest global achievements over the last 30 years but this is being jeopardised by rising inequality. Our report shows how decades of progress in reducing global poverty has disturbingly slowed – the rate of reduction has halved since 2013 – with extreme poverty actually increasing in sub-Saharan Africa. 
“This is a direct result of inequality – the human cost of which can no longer be ignored – and is largely seen in a lack of access to quality public services. Tomorrow, as the elite convene in Davos, 262 million children will not go to school and almost 10,000 people will die because they cannot access healthcare.
 
“Tax avoidance by big businesses and wealthy individuals is depriving developing countries of US$170billion every year. By eliminating tax avoidance and agreeing a new set of rules to make the global tax system fairer, governments, including the Irish and UK governments, can ensure more money is spent on providing free universal public services that reduce inequality and enable people to thrive – and in many cases survive.”
 
Oxfam calls for the following actions to reduce the growing gap between the richest and the rest: 
 
All governments should deliver universal free healthcare, education and other essential public services 
To achieve this, everyone, including big businesses and wealthy individuals, need to pay their fair share of tax. This means ending tax avoidance and evasion by corporates and the wealthy. Ireland and the UK have an important role to play in this regard and needs to agree a new set of global rules and institutions to fundamentally redesign the tax system to make it fair, with developing countries having an equal seat at the table. These new rules would include increased transparency of multinational corporations (MNCs) tax affairs and implementing effective mechanisms to end profit shifting by MNCs at home and abroad. 
 
Clarken continued: “Unless our leaders at home and across the world act now to reduce inequality, the global goal agreed by world leaders to end extreme poverty by 2030 remains out of reach. But it doesn’t have to be this way – there is enough wealth in the world to provide everyone with a fair chance in life. This means working taps and toilets that don’t spread cholera and deadly disease; clinics with nurses, doctors, equipment and drugs; classrooms with teachers and supplies; a pension at the end of a hard-working life.”
 
 
ENDS
 
CONTACT: Spokespeople are available for interview. For more, please contact: Alice Dawson-Lyons at alice.dawsonlyons@oxfam.org or +353 (0) 83 198 1869
 
Notes to the editor: 
The report, methodology document explaining how Oxfam calculated the figures, and the data set is available on request.
Oxfam’s calculations are based on global wealth distribution data provided by the Credit Suisse Global Wealth Data book published in November 2018, which relate to the period June 2017-June 2018. The wealth of billionaires was calculated using the annual Forbes Billionaires list last published in March 2018. See the methodology for more details.
Every year, Oxfam’s calculations about how many people own the same wealth as half the world are based on data available at the time. Credit Suisse has improved and expanded its data set, which means we can recalculate our figures for previous years. We can now calculate that last year 43 people owned the same as half the world. This year it’s 26. The year before last it was 61. 
The World Bank report Poverty and Shared Prosperity 2018 found that global poverty declined on average 1 percentage point per year between 1990 and 2015, but only 0.6 percentage points per year between 2013 to 2015, and may be further slowing.
The UN estimates that tax avoidance by businesses costs developing countries $100bn a year.
Economist Gabriel Zucman estimates that the world’s poorest regions – Africa, Asia and Latin America – lose $70bn in annual revenue due to wealthy individuals’ use of tax havens.

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