Economy

The Biggest Facilitators of Global Tax Abuse

The Cayman Islands is responsible for the largest global tax losses, and by some margin. Estimates from the newly released State of Tax Justice 2020 report indicate that in the average year a $70.4 billion chunk of tax revenue is lost around the world due to the territory's facilitation of corporate tax abuse and private tax evasion. This accounts for a sixth of all global losses.

Other renowned tax havens such as Luxembourg and the British Virgin Islands are also present at the top end of this list but it is the United Kingdom which comes closest to the Cayman Islands with a total of $42.5 billion - ten percent of the world's total losses.

Commenting on the scale of the problem, Alex Cobham, chief executive of the Tax Justice Network, said: “A global tax system that loses over $427 billion a year is not a broken system, it’s a system programmed to fail. Under pressure from corporate giants and tax haven powers like the Netherlands and the UK’s network, our governments have programmed the global tax system to prioritise the desires of the wealthiest corporations and individuals over the needs of everybody else."

Description

This chart shows the countries responsible for the highest annual tax losses to other countries.

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Main enablers of tax evasion in the Caribbean Basin in 2023, by share of tax loss inflicted globally
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Largest enablers of tax avoidance and tax evasion in Latin America and the Caribbean in 2023 (in million U.S. dollars)
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Corporate tax haven index score of selected countries and territories in the Caribbean Basin in 2021
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Total amount of tax revenue losses related to corporate abuses in countries in Europe in 2021 (in millions of U.S. dollars)
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Countries where the largest share of superyachts are registered worldwide as of May 2022
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Total federal and state revenue lost to offshore tax heavens in the United States in 2014, by state (in billion U.S. dollars)

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