Democracy, Natural Resources, and Tax Havens
Authors: Kelon Felix, Chris Jones, Johan Rewilak & Yama Temouri.
Over 36% of multinational firm profits are shifted to low-tax jurisdictions annually, making tax havens a key feature of global capitalism.
Estimates suggest that without such practices, EU countries' domestic tax revenues would be around 20% higher (Tørsløv et al., 2023).
Globally, the State of Tax Justice Report finds that $1.42 trillion in profits are moved offshore annually, costing governments an estimated $348 billion in lost tax revenue (Tax Justice Network, 2024).
Estimates suggest that without such practices, domestic tax revenues in EU countries would be around 20% higher.
Author's summary: Tax havens affect global capitalism.