Whilst our focus is on UK corporate tax avoidance, it’s worth considering that it affects other countries, and not just the developed countries in the OECD. The IMF Working Paper (which is a tough read!) reveals that in fact corporate tax avoidance may well hit developing countries proportionally harder than developed countries. There is almost no reporting or data on the topic in developing countries, so it is a welcome addition to the debate.
As Anders Dahlbeck from ActionAid UK commented in the Guardian it is “the world’s poorest people who are worst affected by tax-dodging. Apple’s settlement [in Italy] is dwarfed by the $200bn that IMF research estimates that developing countries lose to corporate tax avoidance every year – much more than rich countries give in aid. Women and children in poor countries are often the hardest hit as services like health and education are left short of funding. The international tax system has failed to keep up with corporate tax planning and the reforms being pushed by the G20, OECD and other wealthy nations fall short of what developing countries need. Tough new rules are required to increase corporate transparency, end the race to the bottom on corporate tax rates, and stop profit-shifting into tax havens”.
If you have the time to read it… https://www.imf.org/external/pubs/ft/wp/2015/wp15118.pdf