The UN has urged governments to stem the flow of funds to tax havens after companies funnelled $221bn (£152bn) into countries with low tax rates last year.
Two tax havens under UK jurisdiction – the British Virgin Islands (BVI) and Cayman Islands received $72bn of investment as they became a focus for businesses in Russia – China – the US and Hong Kong.
Illustrating the extent of profit shifting to the Caribbean the UN report found that a sample of companies in 26 developed countries registered more profits in Bermuda than they did in China in 2014.
Since then Cameron has come under pressure to secure tougher disclosure agreements with British dependencies and crown protectorates in the Caribbean and the Channel islands to end the secrecy that campaigners believe supports profit shifting to avoid tax.
Unctad (the UN Conference on Trade and Development) said the growing practice among multinational corporations of diverting profits to low tax jurisdictions denied vital investment funds to developing world countries.
(ed: australia had a budget yesterday – and they announced legislation to stop corporations/individuals from ripping off the australian people by shovelling their monies into tax-havens..(what they are calling a google tax..)
..and they announced 1,000 extra inland revenue staff to focus specifically on this issue..
..whereas here in new zealand key is still trying to claim there is nothing to see there..
..and his government stopped inland revenue from even looking at trusts etc..
..and get this..!..the claimed official reason why this inquiry was stopped..was because it would just cost inland revenue money they could spend elsewhere..(chasing tradies..?..).
..and here is the big-lie..that there was no economic-benefit seen in such an exercise..
..that is complete and utter bullshit..as just one decent strike/clawback will cover costs..
..the potential return on dollars spent chasing these corporate/individual bastards is huge…
..anyone can see that..
..so what will john key do..?
..i will bet a hundred bucks to a pinch of his spin that he will continue to lie/prevaricate/claim there is nothing to see there..and will do absolutely nothing..
..now surely even the most one-eyed key-zealot can see how both this situation of nz being ripped off to such a degree by these corporates/individuals..and keys’ non-response to this..both sucks and blows.