Three British Overseas Territories have topped the Corporate Tax Haven Index 2021’s list of the top 10 greatest enablers of corporate tax abuse risks.
According to the Tax Justice Network (TJN), the British Virgin Islands, Cayman Islands, and Bermuda are the most culpable nations in facilitating corporations’ tax evasions.
Some £176bn is reportedly lost in global corporate tax a year, with the OECD, an organisation comprising high income countries that provides international tax guidelines, unable to tackle the rising costs.
In fact, OECD countries and their dependencies have been attributed to 68% of the world’s global tax leaks.
The index claimed that the “lion’s share of responsibility” for enabling corporate tax abuse belongs to the UK and its network of Overseas Territories and Crown Dependencies.
These countries, where the UK has full powers to veto lawmaking and implement key appointments, totalled 31% of the world’s corporate tax abuse risks.
Liz Nelson, director of tax justice and human rights at the TJN, said that the world’s richest countries are “depriving the rest of the world” from the equivalent of “50 nurses’ yearly salaries every minute”.
She added: “It’s time our global tax rules are set by the UN, where democracy and people’s human rights come before plutocracy and super yachts.”