Corporate Tax Haven Index 31/05/2019 – Posted in: Daily News – Tags:

CORPORATE TAX HAVEN INDEX

 

For: Preliminary & Mains

Topic covers: Index, Findings, and Objectives


 

News Flash

The Tax Justice Network (TJN) has released the first ever ‘Corporate Tax Haven Index’.

 

Tax Justice Network

  • TJN is an independent research based international network which has estimated that each year 500 billion dollar in tax is dodged by multinationals by using a network of favorable tax countries.
  • This index covered 64 nations, which are ranked on the basis of ‘corporate tax haven’ score.
  • In this index, some popular countries through which foreign direct investment (FDI) is routed into India have featured among the top 25 countries.
  • The index will be released every two years.

 

Rankings

  • It has identified that the United Kingdom (UK) with its overseas territories such as the British Virgin Islands, Bermuda and Cayman Islands are the biggest enabler of corporate tax avoidance.
  • These three countries have topped the index while the Netherlands is at 4th and Switzerland at 5th position.
  • The UK was ranked at 13.
  • Singapore (8th rank), United Arab Emirates (UAE) (12th rank), Mauritius (14th rank) and Cyprus (18th rank).

 

Highlights

  • According to TJN, 52 per cent of the world’s corporate tax avoidance risks can be attributed to the countries such as Singapore, Mauritius, Netherlands, US, Japan, UK, UAE, Germany, France and Cyprus in the index.
  • Many of such countries, including UAE, Mauritius and Cyprus, through which a lot of foreign direct investment (FDI) comes to India, have made it to the not-so-coveted list.
  • Mauritius, Singapore, Netherlands, Japan and the US are among the top nation investors in India.

 

Source: Business today

 

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