World Bank Money Flowing Into Tax Havens
OXFORD – Investments made by the World Bank into Africa are routinely being routed through tax havens, according to new research.
In a statement issued on April 11th the international charity Oxfam claimed that 84 percent of the investments into sub-Saharan Africa made by the International Finance Commission (IFC), the private lending arm of the World Bank, went to companies located in tax haven jurisdictions.
Over the course of 2015 an estimated fifty one of the sixty eight companies which received loans from the IFC were located in tax havens, with the total amount of money sent amounting to USD 2.87 billion.
The amount of IFC loans routed via tax havens has more than doubled compared to previous years, as in 2010 the loans totalled only USD 1.20 billion.
It was noted that the most popular tax haven used was Mauritius, as companies registered here were known for facilitating “round-tripping” of funds in Africa, a move aimed directly at minimizing tax obligations on investments.
In the statement, the tax policy advisor for Oxfam Susana Ruiz explained the significance of the findings, saying “It doesn’t make sense for the World Bank Group to spend money encouraging companies to invest in “development” while turning a blind eye to the fact that these companies could be cheating poor countries out of tax revenues that are needed to fight poverty and inequality.”
Photo By: Pictures of Money