90% of the world's largest companies have branches in tax havens
$100 billion is the number that developing countries including Vietnam are losing yearly due to tax avoidance activities from multinational corporations.
The tax haven raises the race to the bottom of the CIT
At the Seminar on "Fairness of taxation from multinational corporations and multinational corporations," Oxfam has provided evidence of the losses that 15 tax havens worldwide, 50 major corporations The United States, the 20 largest banks in Europe caused.
According to Oxfam, the current 15 tax havens are headed by Bermuda; Cayman Islands; Netherlands, Switzerland, Singapore, Ireland, Luxembourg, Curaçao, Hong Kong, Cyprus, Bahamas, Jersey, Barbados, Mauritius, British Virgin Islands. The fact that these countries are on Oxfam's "worst-in-the-world" list has facilitated the most serious ways to avoid corporate income tax, which raises the race down. Bottom of corporate income tax.
Its research also found that 90% of the largest companies in the world are opening branches in at least one tax haven. In parallel with the tax avoidance activities of multinational corporations, developed countries are implementing harmful tax incentives, even reducing corporate income tax to 0%.
To counterbalance tax revenues, governments are increasingly applying reckless tax measures (such as value added tax) to public services. This increases the tax burden on the disadvantaged.
Oxfam research also points out that large multinational corporations are using their political power and financial resources to avoid taxation. Based on data from the US Securities and Exchange Commission's 10-K Annual Report, from 2009 to 2015, the 50 largest US companies spent $ 2.5 billion on campaigning. Lang - nearly $ 50 million for each member of Congress. Estimated for each dollar that these companies use for tax incentives, they reduce the tax rate to $ 1,200. At present, the tax rates imposed by these companies are 25.9%, which is nearly 10% lower than the new tax rate set by the law. In addition to lobbying for lower rates, these companies have shifted $ 1.6 trillion to tax havens, an increase of $ 200 billion over last year.
2 for medical expenses is nearly 1 dong from the pocket of the people
According to the Ministry of Health Vietnam's national health account report, in 2014, the share of out-of-pocket health expenditures for health care accounted for 43% of total national health expenditures. That means for every 2 coins spent on health, there is almost 1 dong paid from the people's outposts. This has caused financial losses, leaving some 600,000 middle-income households living on average becoming poor after suffering serious illness and paying for medical expenses.
In 2013, when submitting the Bill on the Amendments and Supplements to a Number of Articles of the Corporate Income Tax Law, the Government of Vietnam has estimated that the addition of tax incentives would reduce the budget revenue to about VND2,080 billion per year.
Similarly, in 2014, the reduction of budget revenue due to the application of corporate income tax incentives and personal income tax under the Law on the amendment and supplement of some articles of some tax laws estimated at 2,500 billion VND / male .
This is an estimate when submitting the bill and in fact the actual reduction in revenue due to tax incentives can be many times higher. According to the International Monetary Fund, the extension of the tax incentive policy is one of the reasons for Vietnam's reduction of the state budget (IMF, 2014). Meanwhile, Vietnam is facing state budget deficit continues to tend to increase over the years and people bear the burden of high medical expenses.