By Chathushka Perera
New York, USA (CWBN)_ Major tech corporations based in the US have been evading taxes in low income countries for decades. According to a report published by ActionAid International, a combined amount of roughly 3 billion USD in taxes is owed by companies like Google (Alphabet Inc.), Facebook and Microsoft, to 20 different countries.
This is money that would go a long way toward a country’s development in various sectors such as infrastructure, job creation, education and healthcare. As per the World Health Organisation, payment of these dues would cover the budget deficits faced by these countries facing off against the Covid-19 pandemic.
“If global rules were fair and effective, they could raise enough in tax from Alphabet alone to employ 244,360 nurses, transforming the public health response to Covid-19 in these 20 countries.” – ActionAid
However, the reforms implemented by the G-20 and OECD failed the address these growing concerns especially in a time where low-income countries are among the worst hit by the pandemic, not just in terms of infection rates and deaths, but also in terms of local economies that have been decimated.
Despite the fact, the G-20, which includes actors to whom much debt is owed by struggling nations, in its recent deliberations, instated a short hold on debt repayment until the end of June, against China’s protests. The decision on an extension to the suspension is to be considered at the end of the 6 month period.
As international cooperate taxation, inclusive of a minimum tax rate based on economic presence, has been an aspect of issue in many situations even though it has not been regulated or even addressed.
“India, Indonesia, Brazil, Nigeria and Bangladesh are the markets studied with the highest ‘tax gaps’ from these three companies” ActionAid stated.
