Effective tax cooperation would help correct the economic distortions generated by a handful of CEOs and ultra-wealthy individuals, enhance macroeconomic stability, and increase the resources available to advance social and environmental goals. But the political barriers to progress must not be underestimated.
BOGOTÁ – In recent decades, the availability of preferential tax regimes and tax havens has deprived governments worldwide of huge amounts of revenue. According to the EU Tax Observatory, multinational corporations shifted $1 trillion – the equivalent of 35% of all the profits booked outside their headquarter countries – to tax havens in 2022. Meanwhile, super-rich individuals faced very low effective tax rates, equivalent to just 0-0.5% of their total collective wealth.
BOGOTÁ – In recent decades, the availability of preferential tax regimes and tax havens has deprived governments worldwide of huge amounts of revenue. According to the EU Tax Observatory, multinational corporations shifted $1 trillion – the equivalent of 35% of all the profits booked outside their headquarter countries – to tax havens in 2022. Meanwhile, super-rich individuals faced very low effective tax rates, equivalent to just 0-0.5% of their total collective wealth.