Christian Aid tackles the phantom menace Christian Aid estimates that developing countries lose as much as US$160 billion each year as a result of tax dodging by some unscrupulous multinational companies. This is far more than they receive in aid and if it were available could be spent on healthcare, education and other essential public services. Many wealthy companies and individuals get away with tax dodging thanks to a lack of financial transparency. They keep their money in a complex network of trusts and shell firms, particularly in secretive tax havens. By setting up these shell firms – also known as ‘phantom firms’ – they can conceal the truth about the profits they make, and the taxes they potentially owe. Tracing the hidden owners is difficult, because forming a corporation or ‘limited liability company’ typically requires less information than is needed to obtain a bank account or driver’s license. Camouflaging company ownership means that citizens can’t see who owns what, can’t hold companies and individuals to account, and can’t make sure poor countries get the tax they’re owed. Phantom firms don’t just enable tax dodging: they also help criminals get away with money laundering, fraud and corruption. Their ‘dirty’ money is concealed under the cover of trusts and shell companies. Shell companies might be ‘phantom’, but their actions have a very real impact on poor communities: this hidden wealth can lock people into hunger and poverty. Christian Aid is calling for a public register, open and accessible to all, that reveals who owns which companies, where they are located, and for whose benefit. They are asking Minister for Finance, Michael Noonan TD, to represent us on this issue at the European Union and to demand full disclosure of who really owns these firms, and make this information public. If this information is brought into the light, then it’ll be easier for tax authorities, the media and ordinary citizens to uncover who is dodging tax, hold them to account and ensure developing countries get the tax income that’s rightfully theirs. Take action now by sending an email to Michael Noonan via Christian Aid’s website.
Posted on: Fri, 20 Sep 2013 10:20:56 +0000
Trending Topics
Recently Viewed Topics
© 2015