New analysis from economists Gabriel Zucman, Thomas Tørsløv, and Ludvig Wier shows that tax avoidance by big companies has preserved billions in revenue that could have gone to government coffers.
They find that $408 billion (€350 billion) is shifted each year to tax havens in the EU (Luxembourg, Ireland, the Netherlands, Belgium, Malta and Cyprus) alone. Stretching their analysis worldwide, Zucman and his colleagues discover that more than $699 billion (€600 billion) wells up in tax havens globally each year. (A report released by Oxfam in 2016 showed that offshoring cost the US government about $111 billion each year in revenue.)
While it’s tricky to track money that floods into tax havens, the Paradise Papers leak of 13.4 million files that tracked 56 years worth of off-shore investments—of both the ultra-wealthy and big corporations—has helped. Tax havens in the EU are also forced to disclose some information because of