Its based on the assumption that the beneficial owners of 80% of value of incorporated companies are evading tax by not declaring the income to their home jurisdiction @alexcobham explains here https://www.taxjustice.net/2017/06/21/bvi-blagging-venal-income/BVI … It's a big assumption. Do you think its a reasonable guess?
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There is some more info, for context in the
@BVIFinance@CapEconomics report https://bviglobalimpact.com/global-contribution … - we are mainly talking about corporate group structuring, fund and investment businesses, joint ventures , listings and vesselspic.twitter.com/JHrWMonPR7
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Most of the value is in the biggest companies, not in the long tail of incorporationspic.twitter.com/cXZnedBzyp
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The owners are mainly in Ching & HK, Europe (including big chunks from Russia & UK)pic.twitter.com/UqKplTByGH
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So for the 80% assumption to be true means the majority of largest owners of the large companies (mainly in places w tax information exchange agreements w BVI) are routinely evading tax by just not declaring their income from these holdings. Is that credible?
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(I don't know - but I'm hoping
#taxtwitter can give an informed view) /ends1 reply 0 retweets 0 likesShow this thread -
Replying to @MForstater
Presumably the 80% figure comes from Zucman’s estimate of the % of offshore cash that’s undeclared?
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Replying to @DanNeidle @MForstater
But you are of course right. Offshore tax evasion has historically been about wealthy individuals. Corporations almost never evade tax.
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Replying to @DanNeidle
Some of the "corporate group structuring' may be individuals in practice though?
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Replying to @MForstater
Absolutely. And some “funds” in the same category. My comment should have been more specific: I mean listed and large private companies with OECD HQs.
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A big question is what about the China & HK owned corporations (since they are the biggest chunk). Not sure that the behaviour of EU based Swiss bank account owners is really a datapoint for this!
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