Honest, paywall-free news is rare. Please support our boldly independent journalism with a donation of any size.
Washington, DC – The Organization for Economic Cooperation and Development (OECD) released a major proposal for curbing corporate tax avoidance. The OECD recommends international cooperation to prevent large corporations from avoiding taxes in the countries where they do business. The OECD plan comes amidst increased calls to crack down on corporate tax avoidance.
“I am very encouraged by the OECD’s strong stance,” said Eric LeCompte, Executive Director of the anti-poverty organization Jubilee USA, which advocates corporations paying their taxes in developing economies. “Developing countries are losing more money to corporate tax avoidance than they are receiving in official aid. For every 10 dollars developing countries receive in aid, 100 dollars is flowing out due to tax avoidance and illicit flows.”
The document contains seven action items for countries to adopt. One of those items is referred to as “country-by-country-reporting” and would compel companies to report profit and trade information to every country in which they do business. This requirement would prevent corporations from shifting profits and using a maneuver called “transfer pricing” to reduce taxable profits in a high-tax jurisdiction where they do business.
“Country-by-country reporting is an important way to get corporations to pay their taxes and stop corruption,” said LeCompte. “The developing world is losing a trillion dollars each year to tax avoidance and illicit financial flows. The money is flowing out far faster than it is flowing in.”
Aspects of country-by-country reporting have already passed into US and European laws. The International Monetary Fund (IMF) also released a paper this year that argued that corporate tax avoidance is harming poor countries and the global financial system as a whole.
Read the OECD’s plan here.
Read Jubilee USA’s release on the International Monetary Fund’s 2014 paper on corporate tax avoidance here.
Holding Trump accountable for his illegal war on Iran
The devastating American and Israeli attacks have killed hundreds of Iranians, and the death toll continues to rise.
As independent media, what we do next matters a lot. It’s up to us to report the truth, demand accountability, and reckon with the consequences of U.S. militarism at this cataclysmic historical moment.
Trump may be an authoritarian, but he is not entirely invulnerable, nor are the elected officials who have given him pass after pass. We cannot let him believe for a second longer that he can get away with something this wildly illegal or recklessly dangerous without accountability.
We ask for your support as we carry out our media resistance to unchecked militarism. Please make a tax-deductible one-time or monthly donation to Truthout.