“Tax the rich, end the wars, and restore honest and effective government for all”, Jeffrey Sachs [Munk, 2013].
Tax is often considered a dirty word by enterprises. In fact, tax should be celebrated. The business case for tax is that revenue can be invested in public services and infrastructure – both of which are necessary for a healthy, well-educated workforce, to attract investment, and for growth.
A couple of months ago I spent some time in Uganda, working with small and medium sized enterprises (SMEs). A conversation with Jane Nalunga – who works for an NGO named SEATINI Uganda – made me realise that international tax policies are unfair towards developing countries, such as Uganda, where tax revenue is much needed. Especially in my own country of birth – The Netherlands – tax rules are allowing multinationals to get away with tax avoiding practices, on a big scale.
The Netherlands is a Tax Haven
Thousands of international firms are currently guilty of legal tax avoiding practices. In the Netherlands alone, there are more than 14.000 firms set up with the intention to avoid taxes in the country of operation. [OxfamNovib, 2016].
Developing countries tend to be the hardest hit by tax avoidance by multinational corporations, as developing countries tend to be more reliant on corporate tax than Read More →