Sir, – While the recent Luxembourg leaks are not surprising, they do raise the question of what is being done to address such damaging practices ("Luxleaks loopholes under scrutiny", November 10th).
Aggressive tax avoidance deprives states of vital revenue, while benefiting only those companies in a position to engage in international tax avoidance schemes, and those that advise them.
Such tax avoidance may indeed be legal but, as recent Christian Aid reports have shown, the morality of such schemes is far less clear.
The poorest countries in the world lose billions every year to tax dodging, yet have little or no say in how the global rules are being developed under the much-heralded OECD Base Erosion and Profit Shifting (Beps) project.
The OECD has taken the lead in developing new rules designed to eliminate some of the more egregious instances of tax avoidance. However the OECD is in essence a club for rich countries, and poor countries have no seat at the table when the problems and solutions are discussed.
The Luxembourg leaks provide more evidence of the problems, but for the vast majority of governments around the world there is still little confidence they will benefit from the solutions under discussion. – Yours, etc,
SORLEY McCAUGHEY,
Head of Advocacy
and Policy,
Christian Aid Ireland,
Clanwilliam Terrace,
Dublin 2.
Sir, – All of the companies named in relation to Luxgate this week have one thing in common. They were playing by the rules.
And that’s the problem. The rules are rigged in their favour and as a result governments the world over are missing out on billions of potential tax revenue. This money could be used to fund essential public services such as health and education instead of lining corporate pockets.
Luxgate comes as heads of state from the world’s 20 richest countries prepare to meet in Brisbane, Australia, for the G20 summit to agree on the next steps for reforming corporate tax rules. These governments need to walk the talk by adopting ambitious rules that will benefit all countries, including developing countries that suffer to the tune of approximately €83 billion every year from corporate tax ruses.
Currently, developing countries are barely consulted on the new sets of rules, and cannot participate in these discussions on an equal footing. Instead, reforms are being discussed within the OECD – a group of exclusively rich countries that ironically includes several tax havens, such as Luxembourg.
The last two decades have seen huge progress in the fight to end extreme poverty; millions more people now have access to healthcare and education, and approximately 150 million fewer men and women are going hungry every day. Yet rising inequality – fuelled in part by tax dodging – means this progress risks being undermined and, in some cases, reversed.
Oxfam’s Even It Up campaign calls for companies to pay their fair share of taxes so citizens in countries across the globe can benefit.
It’s time for consumers and citizens to make their voices heard for equality. – Yours, etc,
JIM CLARKEN,
Chief Executive,
Oxfam Ireland,
Portview House,
Ringsend,
Dublin 4.