Paradise Papers reveal governments still losing billions through tax dodging scams

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