June 18, 2009
Monique Perry Danziger, +1 202 293 0740 ext. 222
WASHINGTON, DC – The Norwegian Commission on Capital Flight from Developing Countries released a report today on illicit financial flows from developing countries and tax havens and put forward recommendations for reform efforts to be considered by the Norwegian Government.
Drawing on research from Global Financial Integrity (GFI) and Tax Justice Network (TJN) to define the scope and consequences of illicit monetary outflows from developing countries, the report concludes that illicit outflows exceed development finance inflows.
The Commission also makes recommendations for reform measures including:
- Considering whether Norwegian multinational companies should be required to submit more detailed annual statements,
- Improving the rules for transfer pricing,
- Establishing a Norwegian centre of expertise on tax evasion,
- Developing networks with a view to increasing international pressure,
- Changing tax agreements to ensure that it is a company’s real business that decides in which country it is subject to taxation,
- Negotiating an international convention to combat the harmful structures in tax havens,
- Supporting efforts to develop new international standards for sound taxation practices under the auspices of the Organization for Economic Co-operation and Development (OECD).
“Global Financial Integrity applauds the Government of Norway for their work in the international forum on the issue of illicit financial flows and their impact on the developing world,” said GFI director Raymond Baker. “This report is an indispensible resource.”
Click here to read the full report.