India’s top investment country appears in tax haven index; cross-border tax abuse by multinationals costs nearly $311 billion | Parami News

Whereas Country Tax Harbors (CTH) Index analyses risk by analyzing country’s laws and regulations, their tax abuse index earlier published by TJN attributed $311 billion of tax losses in the corporate neutrality to cross-border tax abuse by multinational corporate entities.

The TJN or Tax Justice Network is composed of international independent researchers and within its CTH Index, 70 Nations are covered. The listing seeks to identify how good or bad countries are depending on how well they legitimize corporate income tax avoidance by MNCs. It does so by evaluating the amount of legal cover countries provide for abuse of corporate taxation and the level of activities involving foreign and domestic entities in multinational corporations. TJN argued that, as some countries and international bodies have put forward tax haven blacklists and most members of the foreign tax credit rotary theory has been adopted causing the arising gaps in the assessment of laws and activities, this two dimensional approach has made it impossible to assess law and practice in just one direction. To assess’er, top.

There appears to be some leeway in the rules regarding service fees which entails that multinational corporation secret cost allocation which results in efficient profit underreporting resulting in lower taxation which is a factor in determining CTH Index’s top to bottom ranking.

In response to the latest results of the Corporate Haven Index, a spokesman for the Foreign, Commonwealth and Development Office said: “The government is fully engaged in working with the British Overseas Territories and Crown Dependencies to increase transparency, including by establishing a publicly accessible register of company beneficiaries.”

Certain economies that are some among the countries that recorded high levels of foreign direct investments into India rank highly in the Corporate Haven Index. These include: Cayman Islands (ranked 2), Singapore (ranked 5), the Netherlands (ranked 7), etc. (see table).