Europe’s damaging impact on developing countries via bilateral double tax treaties has been laid bare in a new study released by the European Parliament’s European United Left/Nordic Green Left (GUE/NGL) today.
Written by the LSE’s Martin Hearson, ‘The EU’s Tax Treaties with Developing Countries – Leading By Example?’ looks into 172 tax treaties currently in place between EU member states and the global south. It analyses why the vast majority are biased in favour of the bloc whilst depriving poorer countries of taxing rights and much needed revenue.
In particular, multinationals benefit greatly from such sweetheart deals that tax their subsidiaries and headquarters – often based in low-tax EU member states – as opposed to where they operate and earn income – in developing countries.
Amongst the key findings highlighted are:
- The EU’s stated desire to alleviate poverty in developing countries is undermined by unfair tax treaties, which usually favour EU member states –