$427bn a year lost to tax abuse by firms and rich individuals, study finds

Tax abuse by multinational companies and avoidance by rich individuals is costing countries $427bn a year in lost revenues, according to a study by a global advocacy group. The Tax  Justice Network said its report revealed for the first time the extent of the resources being lost, and it called on this weekend’s meeting of the G20 group of developed and emerging market countries to tighten the rules. The TJN’s state of tax justice 2020 report says more than half the losses – $245bn – came from companies shifting $1.38tn of profits out of the countries where they were generated into tax havens, where corporate tax rates were low or nonexistent. Private individuals paid $182bn less tax than they should have by storing a total of more than $10tn in financial assets offshore, the report adds. Read more.