Oxfam exposes tax haven habits of EU big banks

The twenty greatest banks in the eurozone booked over a fourth of their 2015 benefits in expense safe houses, with Luxembourg and Ireland the most loved goals, a report by Oxfam said on Monday. 

The discoveries come as the expense undertakings of major multinationals are under the magnifying instrument after disclosures in the LuxLeaks and Panama Papers outrages demonstrated the strategies utilized by huge organizations to abstain from paying duty. 

“New EU straightforwardness rules give us a look into the duty issues of Europe’s greatest banks and it’s not a pretty sight,” said Manon Aubry, an assessment master at Oxfam. 

“Governments must change the principles to counteract banks and other huge organizations utilizing duty safe houses to avoid expenses or help their customers evade charges,” she said. 

The report said that assessment asylums represent 26 percent of the benefits made by the 20 greatest banks in Europe, signifying an expected 25 billion euros ($27 billion).

By example, Barclays, Europe’s fifth biggest bank in 2015, booked profits of 557 million euros in Luxembourg and paid only one million euros in taxes, an effective tax rate of 0.2 percent.
The report also uncovered that European banks posted 628 million euros in profit in tax havens where they employed zero staff. 
In the Cayman Islands for example, France’s BNP Paribas booked 134 million euros in profit tax free without a single employee present.
Other banks reported profits in tax havens while reporting losses elsewhere. 
In 2015, Deutsche Bank registered no or low profits in several major markets, while booking almost 2 billion euros of profits in tax havens.
Oxfam uncovered the data using new EU legislation that requires banks to report their profit on a country by country basis.
The law is intended to stop big banks from artificially shifting their profits to low tax wealth centres with very low, or zero, corporate tax rates.
“These rules must now be extended to ensure all large corporations provide financial reports for every country where they operate,” Aubry said.
“This will make it easier for all countries – including the poorest – to establish if companies are paying their fair share of tax or not,” she said.
Luxembourg and Ireland were the most favoured tax havens.


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