Possible increase in Tax Revenues

by Developed Africa 13. May 2014 09:00

It was announced last week that the OECD's tax action plans are going to be rewritten to be more developing country friendly.

This is in response to the recognition in a report from Business Among Friends, that has brought attention to the corporate tax dodging techniques that mean developing countries are robbed of a large chunk of potential income. In order to combat this the G20 needs to change global tax rules, and Oxfam argues that a World Tax Authority is needed.

Revenue loss from businesses dodging their tax payments harms poorer economies most, as corporate tax revenues comprise a higher proportion of their national income"

And this is the main reason why something needs to be done about the situation, as for rich economies it isn't too much of a loss, but developing nations are hit hardest by tax dodging, and would reap the best benefit of those extra tax revenues. 

To read the report in full, click here.

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