Report highlights tax losses to global tax abuse and provides assessment of global tax reforms.

Key Observations of Report

• Countries are losing US$492 billion a year to global tax abuse.
  • Out of this, two-third (US$347.6 billion) is lost to multinational corporations shifting profit offshore to underpay tax.
  • Remaining one-third (US$144.8 billion) is lost to wealthy individuals hiding their wealth offshore.
• Nearly half the losses (43%) are enabled by the eight countries (all OECD members) that remain opposed to a UN tax convention: Australia, Canada, Israel, Japan, New Zealand, South Korea, UK and US.
• Countries of Global North lose largest amount of tax revenues in absolute terms while countries of Global South endure the deepest losses as a share of their tax revenues. 
  • Such tax loss results in foregone public services, increased inequalities between countries, and limited domestic businesses.

Policy recommendations

• Adopt a UN tax convention, which would establish globally inclusive international tax rules, combat cross-border tax evasion, and restore the potential for progressive national taxation.
  • A UN framework convention on international tax cooperation will be negotiated from 2025-2027.
• Having excess profits and wealth taxes as it can reduce economic inequality, limit monopoly power, and ensure that those who benefit most from society contribute proportionately to the social good.