Why are taxes important?

• Taxes are a means of sharing out resources for the common good of all people in society.

• Taxation provides a long-term and reliable source of revenue.

• It enables governments to fund essential services.

• It increases governments’ accountability to their citizens.

Tax dodging hurts the poor

• 2.6 billion people lack basic sanitation.

• 1.1 billion people have inadequate access to water. 

• 868 million people do not have enough food to eat.

• 270 million people have no access to healthcare.

• 72 million children of primary school age do not attend school.

Tax in Guatemala

Children in Guatemala in a clinic to recover from acute malnourishment

Tax in Zambia

Mopani Copper Mines Plc in Mufulira, Zambia

How does tax dodging work?

Country of production

Country of sale

Tax havens

Pur

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ing

(Cay

man

Isla

nds)

Fin

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al s

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(Lux

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an

Use

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(Ir

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Man

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ent (

Sw

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land

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(Ber

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mar

ket’s

dec

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d

prof

it

Sup

erm

arke

t’sco

sts

€1 Profit made

€10.5 Costs

€1.5 Workers

€8 €8

€4 €4 €6 €17 €1

€39

Here is a diagram of how bananas can travel through a tax haven on paper, but this can happen to any commodity or service.

Tax havens – the root of the problem

Tax havens offer:

•Financial secrecy

•Low or zero levels of tax.

The tax haven connection

• As much as US$32tn may be hidden in tax havens.

• In 2010, financial wealth in small island tax havens alone amounted to US$18tn – about a third of the world’s financial wealth.

• More than half of world trade – at least on paper – passes through tax havens.

• More than half of all banking assets and a third of multinational company investments are routed via tax havens.

Give tax dodgers nowhere to hide

We want to see the following challenged:

•Secrecy in companies

•Secrecy in tax havens

•Secrecy around company ownership.

Challenging tax dodging

Campaigners from INESC join a march against corruption in Brazil as part of the week of action of the End Tax Haven Secrecy campaign

What would be the result?

‘African countries would have sufficient resources to finance their development, eradicate poverty and end the perpetual dependence on aid.’

Alvin Mosioma, director of Tax Justice Network – Africa

Tax in Bolivia

CEDLA helped make tax work for the poorest in Bolivia

Get active on tax in Europe

Ask your Member of Parliament (MP) to:

•take action to end the financial secrecy in tax havens and company accounts.

•help establish public registers of the real owners of all companies in each country.

Prayer and action

Loving God, you have come close to us in Jesus that we might come close to our neighbours in you. Help us to see your world as one, and to recognise all your people as our sisters and brothers. In this age of globalisation, you call us to turn the present unjust world upside down so that your Kingdom may come.

We will answer your call. We choose to serve you, our God. We commit ourselves to see what the world does not want us to see, to put you before wealth, to bring light to the dark places of the world, and to act for justice in your name.

Amen

Campaigning together in Europe to STOP tax dodging

STOP tax dodging is a joint initiative seeking tax justice.

This presentation has partly been funded by the European Union. The

contents of this presentation are the sole responsibility of Christian Aid

and other member organisations of the STOP tax dodging campaign

and can in no way be taken to reflect the views of the European Union.

Get involved

www.christian-aid.org.uk/ActNow