EU wants to stop corporate tax avoidanceMarch 2021
The European Union wants corporations to disclose a breakdown of how much taxes the pay in each country. The goal is to stop tax avoidance, reports The Guardian.
Multinational corporations such as Apple, Google and Facebook avoid paying about 500 billion dollars in taxes every year by moving profits to countries where taxes are low or non-existent.
Tax avoidance is a huge problem for countries worldwide. When corporations use lawyers and accountants to find ways to pay less taxes, it is up to everyone else to cover the costs of public services such as education and health care. In other words, tax avoidance is one reason why governments are running low on funds.
Here’s a guide by the International Consortium of Investigative Journalists on how corporations avoid taxes: What is a tax haven? Offshore finance, explained