Long-term development

First EU tax haven blacklist names 17 countries

Oxfam calls on Irish Government to tackle tax avoidance at home and globally
 
5th December 2017
 
EU finance ministers including Minister Paschal Donohoe have today adopted the first EU blacklist of tax havens. The list includes 17 mostly small countries. The EU has also published an additional grey list of countries that currently qualify as tax havens but have promised reforms.
 
The blacklisting process considered non-EU member states only. 
 
Reacting to the news, Oxfam Ireland Chief Executive Jim Clarken said: “We welcome the EU’s commitment to addressing the damage done by tax havens and this first concrete step towards tackling tax avoidance. However, it is worrying to see that some of the most notorious tax havens got away on the grey list. 
 
“Placing countries on a grey list shouldn't just be a way of letting them off the hook, as has happened with other blacklisting efforts in the past. The EU has to make sure governments on the grey list follow up on their commitments, or else they must be blacklisted.
 
“It’s a sad irony that if the EU were to apply the criteria to its own member states, Ireland, along with three EU countries; Malta, the Netherlands and Luxembourg would be blacklisted too. While we welcome Minister Donohoe’s support for the blacklisting process, we continue to call for him and the Irish government to tackle tax avoidance at home as well as globally. 
 
Specifically, we need the government to be proactively engaged in tackling existing tax avoidance mechanisms which Ireland is inadvertently facilitating. 
 
The EU’s list was established following a screening and a dialogue conducted during 2017 with a large number of third country jurisdictions. Those that appear on the list failed to take meaningful action to address deficiencies identified and did not engage in a meaningful dialogue on the basis of the EU’s criteria. Work on the list started in July 2016 within the Council's working group responsible for implementing an EU code of conduct on business taxation, in coordination with its high-level working party for taxation.
 
Last week, Oxfam published the report ‘Blacklist or whitewash?’, showing what a robust blacklist of tax havens would look like if the EU were to objectively apply its own criteria and not bow to political pressures. Oxfam concluded that at least 35 non-EU countries should be included in the EU tax haven blacklist. In addition, four EU member states fail the EU’s own criteria: Ireland, Luxembourg, the Netherlands and Malta. 
 
ENDS
 
Daniel English
Oxfam Ireland
086 3544954
 
Photos and TV-quality video footage of today illustrating a tax haven in Brussels are available and can be used by the media for free.
 
An interactive map shows the 39 countries listed in the report and explains why they should have been blacklisted by the EU.
 
The EU committed to a blacklist process in the wake of scandals like the Panama Papers and Lux Leaks that showed how tax havens let the companies and the super-rich get away with billions in unpaid taxes. The EU blacklist is based on three criteria: transparency, fair taxation, and participation in international fora on tax.
 
The EU’s blacklisting negotiations have taken place behind closed doors, and countries participating in the talks have refused to answer questions. The process has been in the hands of one of Brussels’ most secretive working bodies, the so-called Code of Conduct Group, which insists on its work being confidential.
·         86% of European are in favour of “tougher rules on tax avoidance and tax havens”, while 8% are “against the idea” according to the Standard Eurobarometer, published in July 2017.
·         Tax dodging costs developing countries $170 billion a year: $70 billion through tax dodging by super-rich individuals and $100 billion through corporate tax dodging. $100 billion could provide an education for 124 million children and pay for healthcare services that could prevent the deaths of at least six million children annually.  There are 124 million children out of school. The annual domestic financing gap to achieve universal education in low and low middle-income countries is $39 billion per year. $32 billion would fund the key healthcare to prevent the deaths of 6 million children each year.
 
Following the Paradise Papers scandal, Oxfam released a 5-point plan outlining steps governments should take to prevent further scandals on a global scale. This includes establishing a global blacklist of tax havens that naming countries such as Ireland and the Netherlands that have been key players in the Paradise Papers scandal.

 

Give an unexpected gift this Christmas

Christmas songs playing in shops, lights strewn between buildings on city streets, shopping windows decorated with evergreen trees and holly, rosy cheeks on passers-by. The Christmas season has officially begun.

This also means crowded shops, long queues, and heavy bags. Ba-humbug!

Instead of enduring the crowds, waiting in queues and braving the cold, consider nestling up to a warm cup of tea with your internet browser opened to Oxfam Unwrapped.

Oxfam Unwrapped offers 17 unique and unexpected gifts ranging from €5/£5 to €1,000/£926. Whether it’s a cooking stove or a clutch of chicks, each gift funds Oxfam’s work around the world. Don’t worry… a clutch of chicks won’t arrive on your doorstep. Your gift donation goes toward poor families and communities that need it most.

Leave the soap and lotion gift baskets at the shops. Instead, purchase our soap stocking filler for a family member. Money raised from your donation supports humanitarian work from our Saving Lives fund. It provides people like Binta and her daughter Fati in Niger with hygiene training to keep them from illness and deadly diseases.

Want to get something sweet for a friend? Instead of picking up the predictable box of chocolates, make a donation to our Livelihoods fund by buying a honeybees gift card. This purchase helps fund the communities who depend on animals for their livelihoods. It empowers people like Augustina in Ghana. Through an Oxfam-supported beekeeping project, she was able to earn additional income to pay her children’s school fees.

When drought struck Somaliland, Faria moved with her children to Karasharka Camp where Oxfam provided safe water. This Christmas, give something better than a bottle of wine or bubbly to your colleague. Consider making a donation to our Water for All fund by purchasing safe water for a family gift card. This gift provides poor communities with safe access to water through pumps, tanks, taps and purification systems.

Your unexpected gift card from the Unwrapped campaign provides the tools, training and resources to support and empower communities. While bringing a smile to your loved one’s face, you will also be building brighter, happier futures. Happy shopping!

Paradise Papers reveal governments still losing billions through tax dodging scams

Political leaders must put interest of public over corporates and super rich-Oxfam Ireland

5 November 2017

Spokesperson available

First came #LuxLeaks, then #Panama Papers. Now, today the so called #Paradise Papers reveal that governments are still losing billions in revenue due to international corporations and billionaires hiding their fortunes and avoiding paying their taxes.

Today as the International Consortium of Investigative Journalists published details of the companies and individuals cheating governments out of billions of dollars in tax revenues, Oxfam Ireland is demanding that political leaders put the interests of the public over corporates and the super-rich and put a stop to the scandal of tax dodging.

Oxfam Ireland, CEO Jim Clarken said: “The Paradise papers are yet another ugly insight into how the global tax system is being exploited by those who should be paying most. They reveal the staggering scale of the tax dodging scams and evasion tricks which are depriving governments of billions in income.

The revelations in the Paradise Papers also expose our leaders’ feeble attempts to stop tax cheats. Following the Panama Papers expose, we heard tough talk from politicians but this has translated into weak reforms thanks to pressure from big business and the super-rich.

We must remember that tax dodging impacts on everyone whether they live in richer nations or the developing world. It fuels poverty and inequality. When the super-rich and corporations dodge taxes it is ordinary people, who pay the price.

Just think how the additional revenue could help improve services in a country like Ireland. The extra taxation could be directed towards schools, hospitals and other social services. Some of the billions dodged by corporations and the super-rich in poor countries every year could fund the healthcare services needed to prevent the deaths of millions of mothers, babies and children.”

Oxfam Ireland is proposing several ways to stop the global tax dodging:

  • Establish a “blacklist” of countries who refuse to adhere to international taxation rules. Listed countries should face stiff penalties.
  • End tax secrecy. Establish a publicly-available, register of companies so we know who their real owners are. This will make it easier to follow the money.
  • Introduce a second round of tax reforms to build on the BEPS1 (Base Erosion and Profit Shifting) process. This time it should work in favour of all countries, not just the wealthiest.

Jim Clarken said: “Governments, including Ireland’s must work together to shut down tax havens by establishing a global tax haven blacklist; end tax secrecy so that its clear if corporations and the super-rich pay their fair share of tax; and kickstart a new round of tax reforms that rebuild the tax system in the interests of the majority and not the few.

It is not good enough to argue that tax avoidance is permissible because practices fall within the letter of the law. Legal loopholes abuse a broken system. Everyone has a responsibility to contribute towards the public services and infrastructure on which we all rely.

These changes take a lot of time and effort, but most importantly, they take political will. Otherwise, the super-rich will keep siphoning billions of dollars away into their offshore accounts.”

To learn more about Oxfam Ireland’s tax justice campaign go to https://www.oxfamireland.org/tax

ENDS

REPUBLIC OF IRELAND: Daniel English on +353 (0) 86 354 4954 / daniel.english@oxfamireland.org

NORTHERN IRELAND: Phillip Graham on +44 (0) 7841 102535 / phillip.graham@oxfamireland.org

A third of tax dodged in poor countries enough to prevent 8m deaths a year, new Oxfam study reveals

Just a third of the $100bn [approx. €86bn/£78bn] tax that companies dodge in poor countries annually is enough to cover the bill for essential healthcare that could prevent the needless deaths of eight million mothers, babies and children, Oxfam revealed today as it launched a hard-hitting film illustrating the human cost of tax avoidance on the world’s poorest.

Experts estimate that $30bn [approx. €25.8bn/£23bn] is needed each year to pay for basic healthcare such as vaccinations, midwives and diarrhoea treatment that could prevent an average of 7.8m children and 210,000 women dying in 74 countries with large numbers of people living in poverty.

Jim Clarken, Oxfam Ireland’s Chief Executive, said: “Tax dodgers may not be literally stealing medicines from the pockets of the poorest but they are depriving poor countries of billions that could be invested in healthcare.

“Oxfam works in some of the poorest countries in the world and sees the impacts of tax dodging every day. For instance, we work in Tanzania which has an annual health budget of just €17 per person. Every medicine that is not bought for the lack of government funds due to tax dodging affects thousands of men, women and children across the world.

“While corporate tax avoidance strips developing countries of vital funds needed for hospitals, millions of the world’s poorest people are missing out on basic medical treatment that could save their lives and help them escape hardship. There can be no excuse for delaying tough action against tax dodging.

“As the EU tax transparency process is at a standstill, the Irish and UK governments should lead the way in helping to ensure companies pay their fair share of taxes everywhere they do business.

“Ireland should agree legislation with its EU partners to ensure that multinationals publically report on a country by country basis where they make their profits and pay their taxes.

“Making this information public will give both policy makers and the public the opportunity to understand how a country’s corporate tax system is actually operating, and provide them with the information to review and change it.

Oxfam is urging the UK Chancellor Phillip Hammond to use next month’s Budget to commit to implementing tougher tax laws for British multinationals, including those that operate in developing countries, by the end of 2019. As movement towards an EU tax transparency deal has stalled, it is calling on him to push ahead and build on the leadership some UK companies have already shown.

More than a year since the Government passed legislation to enable the introduction of comprehensive public country by country reporting for UK-based companies and nearly two years since the last Conservative government agreed the case had been made for the change, it is still no closer to being a reality.

Poor countries are twice as dependent as rich countries on corporate tax revenue as a proportion of the money they have available to buy medicines, pay nurses and pipe clean water to people’s homes. There is evidence to show that when poor countries increase their tax revenue – in particular from corporate and income tax – they spend more on healthcare, leading to healthier populations.

Greater tax transparency would make it easier to verify whether companies’ tax bills are in line with their real economic activity in every country where they do business – and to hold them to account if not.

However, until these public reporting requirements are mandatory for all large businesses, widespread tax avoidance will continue to deprive governments rich and poor of revenue needed to provide essential services and tackle poverty.

ENDS

For more information or interviews please contact Phillip Graham on 00 44 (0) 7841 102535 / phillip.graham@oxfamireland.org

 View and/or link through to the film here.

 

This debit card provides families in Kenya with access to safe, clean drinking water

A simple innovation is changing the way we fight drought. 

It is not uncommon for new mothers to struggle to adjust to the challenges of motherhood. But Catherine Nabulon (34) from Abulon, Kenya, has the added complication of raising her new-born in the middle of a drought. After her husband left her, she became the sole earner in her household and now spends her days in search of odd jobs, which has gotten increasingly difficult as resources dried up.

Catherine Nabulon from Kenya is raising her new-born baby in the middle of a drought where clean, safe drinking water is scarce. Oxfam is there, providing people like Catherine with cash via an e-wallet card so they can buy water and take back control of their lives. Photo: Joy Obuya/Oxfam

Turkana County, where Catherine lives, has been ravaged by a devastating drought. It is one of 23 counties — half of Kenya — currently in dire need of water. With increased demand from people who desperately need to provide for their families and their livestock, water sources have been stretched.

Right now 2.6 million people in Kenya need life-saving aid, including clean, safe water. 

To cope with the effects of drought, Oxfam is providing cash via an e-wallet mechanism to enable people to regain some control over their lives.

Customers like Catherine present their card to an Equity Bank agent who debits the amount that they need to buy water for a particular day. The agent then issues a receipt for that amount of water. Each five-gallon jerry can costs 5 Kenyan Shillings, or about €0.04/£0.03.

Next the customer gives the receipt to a water kiosk vendor for redemption who draws a volume of water that is equivalent to the amount taken off the card.

With her allocation of 900 Kenyan shillings (approx. €7.50/£6.50) Catherine purchases clean water to care for her baby. This support gives her peace of mind and allows her to focus on her dream of starting a business.  

The system also allows for flexibility and better planning so Catherine and others in Turkana can address their most immediate needs and cope with the drought.

Oxfam is there

Since September 2016, Oxfam has been on the ground in Kenya, repairing and upgrading borehole wells so that people can access clean, safe drinking water as well as providing cash assistance to help people buy essentials like food. We also provide hygiene and sanitation support and training to help prevent the spread of deadly diseases.

Through financial support from the European Civil Protection and Humanitarian Aid Operations (ECHO), we are reaching 1,000 households (or 6,000 people) with cash transfers, including cash that is disbursed through the e-wallet mechanism used specifically to buy clean, safe water. 

Please support people like Catherine

Despite Oxfam’s work, drought in Kenya continues to push people to extreme hunger. You can take action now to help people like Catherine by donating to our Hunger Crisis Appeal – 100% of your donation will go to our emergency response supporting people facing starvation in East Africa, Nigeria and Yemen.

Divya Amladi is Oxfam America’s Content Producer and Copywriter. 

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