Oxfam’s research named the worst tax havens in the world

Multinational corporations rob developing countries of 100 billion dollars every year by using tax avoidance schemes, global charity Oxfam said in a report released Monday.

The charity said tax dodging by multinational corporations cost poor nations vital resources that would be enough to provide an education "for the 124 million children who aren't in school and fund healthcare interventions that could prevent the deaths of at least 6 million children every year."

Called "Tax Battles: the dangerous race to the bottom on corporate tax," the full ranking of the world’s top offenders is: (1) Bermuda; (2) the Cayman Islands; (3) the Netherlands; (4) Switzerland; (5) Singapore; (6) Ireland; (7) Luxembourg; (8) Curaçao; (9) Hong Kong; (10) Cyprus; (11) Bahamas; (12) Jersey; (13) Barbados; (14) Mauritius; and (15) the British Virgin Islands.

"Switzerland, Singapore, and The Netherlands are revealed to be the top three offshore financial centres used by tax-dodging multinationals operating in Australia," Oxfam Australia's senior economist Muheed Jamaldeen said in a news release.

"The average corporate tax rate across G20 countries was 40 per cent 25 years ago – today it is less than 30 per cent," the release said."The use of unproductive and wasteful tax incentives is also ballooning, particularly in the developing world."

"Creating a public list of the world's worst tax havens is a step towards creating disincentives for multinationals to use them,"Jamaldeen said.

The listing criteria was based on countries with the “most damaging tax policies,” such as zero corporate tax rates, which ultimately harm the average taxpayers, the NGO said.

The publication of Oxfam’s new ‘Tax Battles’ report coincides with the first day of the Lux Leaks whistle-blowers’ appeal trial in Luxembourg. Whistle-blower Antoine Deltour and his co-defendants exposed tax deals negotiated by Luxembourg tax authorities that enabled multinational companies to dodge millions of dollars in taxes.

The increase comes despite the EU’s public outcry over the LuxLeaks and Panama Papers scandals, which both showed to what extent companies and individual have gone to avoid paying their dues.