STOP tax dodging

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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.

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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.

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Tax in Guatemala
Children in Guatemala in a clinic to recover from
acute malnourishment
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Tax in Zambia
Mopani Copper Mines Plc in Mufulira, Zambia
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How does tax dodging work?
Supermarkets costs
Purchasing (Cayman Islands)
Financial services (Luxembourg
Supermarkets declared profit
Insurance (Isle of Man
Use of brand (Ireland)
Management (Switzerland)
Distribution (Bermuda)
1 Profit made
10.5 Costs
1.5 Workers
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Country of production
39
8
4
4
1
6
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Country of sale
Tax havens
Here is a diagram of how bananas can travel
through a tax haven on paper, but this can
happen to any commodity or service.
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Tax havens the root of the problem

• Tax havens offer
• Financial secrecy
• Low or zero levels of tax.

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The tax haven connection

• As much as US32tn may be hidden in tax havens.
• In 2010, financial wealth in small island tax
  havens alone amounted to US18tn about a third
  of the worlds 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.

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Give tax dodgers nowhere to hide

• We want to see the following challenged
• Secrecy in companies
• Secrecy in tax havens
• Secrecy around company ownership.

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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
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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
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Tax in Bolivia
CEDLA helped make tax work for the poorest in
Bolivia
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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.

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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

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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.
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Get involved

• www.christian-aid.org.uk/ActNow