Global Financial Integrity

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GFI Applauds Senator and Democratic Presidential Candidate Barack Obama’s Pledge to Close Corporate Loopholes, Tax Havens

Monique Perry Danziger, +1 202 293 0740 ext. 222
Global Financial Integrity
Monique Perry Danziger, +1 202 293 0740 ext. 222

WASHINGTON, DC – Senator Barack Obama accepted the Democratic Party presidential nomination last night with a speech in which he stated that he would fund his agenda for domestic reform, including providing tax relief for working families, healthcare and investment in energy independence and education, by “closing corporate tax loopholes and tax havens.”

In a response to Senator Obama’s speech, Global Financial Integrity (GFI) director Raymond Baker commented “Curtailing tax haven abuse and corporate tax evasion will net the Treasury hundreds of billions of dollars. Senator Obama’s pledge to address tax haven abuse sends a message that cheating the government will no longer be tolerated.”

Baker also noted that Senator Obama has a strong senatorial record of supporting anti-illicit financial practices legislation, including sponsorship of two key anti-corporate tax evasion bills:

  • S. 681, the Stop Tax Haven Abuse Act, which would allow U.S. tax and securities law enforcement to presume that non-publicly traded offshore corporations and trusts are controlled by the U.S. taxpayers who formed them or sent them assets, unless the taxpayer proves otherwise.
  • S. 2956, the Incorporation Transparency and Law Enforcement Assistance Act which would require all U.S. companies to provide state authorities with the names of the entity’s beneficial owners in order to assist law enforcement efforts to track sources of illicit cash.

A report issued by the Senate Permanent Subcommittee on Investigations in July, estimated that $100 billion in tax revenues are lost each year due to tax haven abuse including $30 billion in corporate tax evasion, and recommended that Congress enact the Stop Tax Haven Abuse Act.

“The potential gain from curbing the abuse of tax havens is staggering,” said Baker.  “Senator Obama has not only made a promise to the American people, he has shown us he has a plan for delivering on that promise.”