How excellent this is!

More than two-thirds of the investments made by the private-sector arm of the UK’s aid programme last year were channelled through “notoriously secretive” tax havens, according to a report that calls on European development agencies to be more transparent and accountable in their business dealings.

The study, by the European Network on Debt and Development (Eurodad), found that billions of euros intended for projects in developing countries are being routed through some of the world’s most secretive financial centres, allowing businesses to avoid taxes and the attendant regulations.

The effect
of this being, of course, that we get more development for our money and less of the cash ends up with the foreign politicians.

What’s not to like about this?

3 thoughts on “How excellent this is!”

  1. I’m not convinced that you’ve seized the correct end of the stick here.

    Nor, of course has the Grauniad.

    These are multilateral funds, I think, domiciled where they can be free of the tax jurisdictions of all the development finance institutions that contribute to them and which can invest across a range of developing countries.

    Still sensible, of course, but the foreign politicians aren’t apposite.

  2. Hmmm…
    Most of the “investments,” I suspect, are not expected to make money – if they were, there old be no reason for Foreign Aid funds to be writing the cheques, or for the (net) funding to count as part of the aid commitment. Hence, there is no need to avoid taxes on the gains, and therefore no need for tax haven locations. Further, to the extent that gains are realized and taxed, it is the ‘donor’ countries who are capturing the tax – which really doesn’t seem unfair.

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