The developing world loses $1 trillion dollars a year due to illegal practices like tax evasion and corruption—also known as illicit financial flows. For every 10 dollars in aid that poor countries receive, 100 dollars are lost due to this behavior. Because of corporate tax avoidance, poor communities around the world and across the United States oftentimes don’t have the resources they need to support infrastructure and social programs.
Additionally, “shell corporations” and other vehicles that hide the identities of their owners not only contribute to tax evasion but also can support human trafficking and the exploitation of poor communities.
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