EU Banks Booking Profits in Tax Havens
According to the information contained a in a new report released by Oxfam International on March 27th, approximately a quarter of all profits and activity booked by the 20 biggest banks in Europe is booked through entities located in tax havens.
Oxfam suggested that the activity which is said to transpire in tax havens is actually booked through locations which have few, if any, any bank staff, and, therefore the proportion of profits moving through tax havens is well out of proportion to the economic realities of the bank’s business.
However, if the activity in the tax havens is real, then it would mean that the employees located in tax havens are, on average, four times as productive as the employees located in the EU.
Luxembourg and Ireland seem to be the most popular destinations among banks, accounting for 29 percent of the profits posted by the banks.
It was also noted that entities with bank staff at all were reportedly responsible for as much as EUR 628 million of the profit of the EU banks.
Commenting on the potential effect of the rampant tax avoidance, Manon Aubry, Oxfam’s Senior Tax Justice Advocacy Officer said “…all companies and individuals have a responsibly to pay their fair share of tax. Tax dodging deprives countries throughout Europe and the developing world of the money they need to pay for doctors, teachers and care workers.”