The CAPE - Centre des Arts Pluriels Ettelbrück is hosting the third edition of its A CAPE'lla Festival. Delano has 2 festival passes to give away.
The A CAPE'lla festival showcases the art of a capp...
International development: Luxembourg is a tax haven helping deprive millions of euro from going to aid programmes, Oxfam has said.
The Grand Duchy has been accused by a global poverty-fighting agency of helping the rich cheat on taxes, in turn forcing governments to cut back on key development programmes.
More than €14 billion “is hidden by wealthy individuals in tax havens worldwide, representing a loss of more than $156 billion in tax revenue”, according to international charity Oxfam.
The British-based organisation released its report on Tuesday, to coincide with an EU leaders’ summit in Brussels on cracking down on tax havens.
In recent months, multinational corporations including Amazon, Apple, Google and Starbucks have been accused by EU and US officials of unfairly shifting revenues to shell subsidiaries in lower tax jurisdictions such as Ireland and the Grand Duchy to aggressively cut down on payments to national and local treasuries.
“Oxfam has found that two-thirds of this global offshore wealth--more than $12 trillion--is hidden in EU related tax havens, such as Luxembourg, Andorra or Malta. These havens are facilitating the loss of over $100 billion in tax revenues worldwide.”
The organisation said “a third of offshore wealth is sitting in UK-linked tax havens” such as the Cayman Islands, Gibraltar and Jersey, “where it is undeclared and untaxed”.
However earlier this year Luxembourg economy minister Étienne Schneider told Delano in an interview that the majority of international firms with operations in the Grand Duchy: “choose Luxembourg for doing business. They have real substance in Luxembourg. That’s the point.”
Schneider said that Amazon executives, for example, have told him the firm is “extremely happy” with the Grand Duchy as a business location irrespective of its tax regime.
In its report this week, Oxfam said the amount of uncollected taxes represents “twice that required for every person in the world to be living above the $1.25-a-day ‘extreme poverty’ threshold”, at a time when wealthy countries are cutting back on international aid due to declining tax revenues.
Indeed, in April rich world economic think tank OECD reported that “development aid fell by four percent in real terms in 2012, following a two percent fall in 2011” and that worldwide only “Denmark, Luxembourg, the Netherlands, Norway and Sweden continued to exceed the United Nations’ [official development assistance] target of 0.7% of” gross national income.