Press Releases

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

As he meets with Apple CEO, Varadkar must push for fairer tax arrangements for multinationals

First meeting since EU referred Ireland to European Court of Justice

As the Taoiseach meets with Apple CEO, Tim Cook today, Oxfam Ireland is urging him to stress that the days of special deals for companies like Apple are over.
 
During his trip, the Taoiseach will meet with senior executives from several tech firms including Apple, Facebook, Microsoft and Google. This will be the first meeting between the Taoiseach and Apple since the European Commission announced it was referring Ireland to the European Court of Justice for failing to collect €13 billion of state aid from the company.
 
Oxfam Ireland, CEO Jim Clarken said; “These meetings are an ideal opportunity for the Taoiseach to make an unambiguous commitment to reforming the tax arrangements for multinationals operating in Ireland.
 
Ireland’s needs to stop blocking EU plans to ensure all multinationals in the EU show greater transparency when detailing where they make their profits and pay their taxes.  As long as tax dodging continues to drain state coffers, there will be less money to spend on important public services.
 
Most Irish people understand that negotiating special tax deals like the one that allowed Apple to avoid paying €13 billion has greatly damaged Ireland’s international standing and reputataion.
 
Greater tax transparency would make it easier to verify whether companies’ tax bills reflect their real economic activity and to hold them to account if not. Fairer tax arrangements are good for Ireland, good for the EU and good for developing countries. The Taoiseach now has the opportunity to show leadership by insisting on arrangements which ensure big corporations pay a fair share of their big profits in taxation.”
 
This week Oxfam realised a video highlighting the impact on poorer countries.  Less than half of the amount of tax which companies dodge in poor countries per year would be enough to pay for essential healthcare to prevent the needless deaths of eight million mothers, babies and children. 
 
ENDS
 
Daniel English
Oxfam Ireland
086 3544954 
 

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.

 

Irish Aid’s €2 million pledge to Rohingya crisis welcome - Oxfam Ireland

The decision by Ireland to pledge €2 million in aid to the Rohingya refugee crisis in Bangladesh is a welcome development Oxfam Ireland has said. The announcement was made at a special donor conference held in Geneva today.

Over half a million Rohingya refugees have crossed over to Bangladesh from Northern Rakhine State in Myanmar since August, and 2,000 more are arriving every day. This is a large scale and escalating humanitarian crisis.

Oxfam Ireland, CEO Jim Clarken said; “This announcement today by Irish Aid is extremely welcome and will help contribute towards the response to this unfolding humanitarian disaster. The Rohingya refugees are living in terrible conditions and need life-saving assistance now, including clean drinking water, sanitation, and hygiene, essential food and emergency supplies. More than 70% of the newly arrived have no shelter, and only 50% have access to safe drinking water.

Both refugees and communities hosting them need urgent support and Oxfam Ireland has been encouraging donors and governments to act immediately. Existing camps and the ones newly being set up are inadequate to deal with the massive influx resulting in many seeking shelter under open skies, roadsides, and in forest areas with little or no protection.”

Oxfam is responding now and has reached 180,000 people by providing clean drinking water, portable toilets and sanitation facilities, plastic sheets, and other essential supplies. In total, we are planning to reach more than 200,000 people.

To help Oxfam’s response go to https://www.oxfamireland.org/bangladesh

Ends

Daniel English
 
Desk: +353 (0) 1 635 0422
 
Mobile: +353 (0) 86 3544954

 

Race to prevent disease as thousands of Rohingya refugees arrive daily in Bangladesh - Oxfam

Aid workers are in a race against time to stop the rapid spread of disease as thousands of Rohingya people continue to arrive in Bangladesh every day. Oxfam warned that an outbreak of cholera would devastate the camps where hundreds of thousands of people are without safe water, shelter or enough food to eat. 

More than 50,000 newly-arrived Rohingya refugees have been hit by diarrhea, pneumonia, skin disease and acute malnutrition as aid agencies struggle to meet the needs of more than half a million people who have arrived from neighbouring Myanmar since August.

Oxfam engineers are working through torrential rain and floods to install water pumps and tanks, latrines and emergency shelters and have so far provided help to 180,000 people in the over-crowded, ill-equipped camps and ad-hoc settlements of Cox's Bazaar. 

Safe water, food and clean toilets are critical to preventing the outbreak of cholera and many other illnesses that have already affected people living in the camps. Currently, the camps are short of 25,000 toilets, increasing the risk of disease.

Enamul Huque, an Oxfam water and sanitation engineer who has worked for more than 25 years building water systems in the world's biggest refugees camps, including Zaatari, Bidi Bidi and Dadaab, says the crisis is one of the fastest population movements he has ever experienced. 

Huque said: “With more than half a million people having arrived in Bangladesh in less than six weeks, we are working as hard as we can to avert a possible cholera outbreak. Providing people here with lifesaving water and sanitation has been a huge challenge, especially along the Naff peninsula where torrential rains have helped to turn the mud tracks over hilly terrain into clay quagmires.” 

One woman who has recently arrived in the camp told Oxfam about her journey: “I came to Bangladesh about a month ago with my family. I walked for nine days to reach the camps. For three weeks I didn't have clean water or soap to have a shower or even to wash my hands. Yesterday, we got a toilet and a tub, and today we got soap and some food. I am happy, for the first time in weeks I can finally wash my clothes."

The latest shipment of aid dispatched from Oxfam's warehouse in the UK has provided 15 tonnes of water pumps, water tanks and material for construction of emergency latrines to provide water to 35,000 more people. A further two shipments planned will help Oxfam to reach 200,000 more refugees.

The total need for clean water each day is 58 million litres. The existing supply in and around the camps is providing less than a litre of water per person per day – insufficient to meet even their basic needs. 

In addition to providing clean, safe water and toilets, Oxfam and its partners have also been distributing emergency food materials including flattened rice, sugar and high-energy biscuits as well as providing hygiene materials like laundry and toilet soap to over 100,000 people.

Oxfam are urgently appealing for people to donate to their Bangladesh Rohingya Crisis appeal: https://www.oxfamireland.org/bangladesh  

ENDS

REPUBLIC OF IRELAND: Alice Dawson on 00353 (0) 83 198 1869 / alice.dawson@oxfamireland.org

NORTHERN IRELAND: Phillip Graham on 0044 (0) 7841 102535 / phillip.graham@oxfamireland.org

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