The Insidious impact of Tax Dodging
The fact that large corporations, especially multi-national ones, enjoy special privileges (loop holes) that allow them to avoid paying taxes is no secret. The situation is a common one. It exists in most of the rich nations. In the United States, many law firms are engaged full time in advising their clients how to take advantage of the opportunities created by friendly legislators. Hedrick Smith did a great exposé of American companies in Frontline (see below). Today's issue of the Guardian,UK, carrries an article captioned Tax avoidance 'keeps developing countries poor
' that outlines the scope and magnitude of the damage done by the tax dogders. The figures were based on a report issued by Christian Aid and covers UK companies.
- By not paying the taxes, rich businesses are depriving developing countries of much needed revenue, according to a report by Christian Aid.
- Andrew Pendleton, a senior policy advisor for the charity, said the scale of the lost revenue "beggars belief".
- It argues that the shortfall means the developed world will never achieve its stated aim of reducing world poverty. The report coincides with the UN's review of its Millennium Development Goals (MDG), which is taking place in New York.
The Guardian,UK 9/12/05Tax Me If You Can - Hedrick Smith in Frontline 2/19/2003*****
- "Tax is the forgotten issue in the debate about how to tackle poverty, and must be added to trade, debt and aid if the world is serious about meeting the MDGs," Mr Pendleton said.
---Amos Bronson Alcott 1799-1888, American Educator, Social Reformer