Meanwhile western governments, and more important their taxpayers, must forego staggering sums in revenue. Some $20tn is estimated lost by individual tax dodgers round the world alone, almost a third of it (according to Oxfam) to just 10 British-jurisdiction tax havens. The corporate losses are thought incalculable.
Err, no. Some sort of vague relationship with numbers is useful here.
Global tax revenue is of the order of $23 trillion. Global GDP is perhaps $70 trillion. We really do not think that 30% of global GDP should be paid in tax and isn’t being.
The $20 trillion is a huge guesstimate of the total amount that is in havens, not the income from that capital amount, nor the tax that should be but is not being paid on that total amount.
And it includes anything that companies are doing too.
International custom and practice stipulates that tax should be made in the country in which “value is added”. That has come to be identified, ludicrously, with a company’s headquarters.
Nope, that’s not true either. Never has been, not since League of Nations days either.