The release of more than 13 million financial and tax documents known as the “Paradise Papers” show that the Panama Papers last year and LuxLeaks in 2014 were just the tip of the tax avoidance iceberg. It also shows that governments have not learnt their lesson and taken action.
Both the OECD and G20 made recommendations several years ago that would have increased transparency of corporate taxes, and extensive research shows that this is effective in limiting corporate tax avoidance. Recently, we also recommended to a Senate committee that the government limit the use of some financial products that can be re-purposed for tax avoidance.
The Paradise Papers detail the complex offshore financial and tax activities of celebrities, politicians, world leaders, and more than 100 multinational entities. Here are three things that could help curb the problem.