E.J. Fagan, +1 202 293 0740 ext. 227
Tax Evasion, Crime, Corruption Major Detriments to Growth, Exacerbate Income Inequality
GFI: G20 Should Embrace Country-by-Country Reporting, Crack Down on Anonymous Shell Companies
Russian Crackdown on Civil Society “Casts a Dark Cloud” on Summit
WASHINGTON, DC – As world leaders prepare to meet in Moscow this week to discuss stagnating economic growth, Global Financial Integrity (GFI) urged G20 leaders to take strong action to curtail illicit financial flows, the proceeds of crime, corruption, and tax evasion. The Washington, DC-based research and advocacy organization called on world leaders to expand efforts to crackdown on abusive tax dodging and the anonymity surrounding anonymous shell companies.
Transparency Advocates, Small Business Groups, Investors, Labor Unions Hail New Legislation as Key to Curtailing Crime, Corruption, Fraud, Tax Evasion
WASHINGTON, DC – The Financial Accountability and Corporate Transparency (FACT) Coalition applauded today’s introduction of bipartisan legislation in the U.S. Senate crucial to stemming the flow of dirty money hidden behind anonymous American shell companies. The alliance of civil society organizations, small business groups, investors, and labor unions urged lawmakers to move quickly to pass this critical piece of legislation.
Joel Anand Samy
Global Financial Integrity
The Balkans’ $111.6 Billion in Illicit Financial Outflows (2001-2010) Hemorrhages the Region’s Treasuries and Exposes Western Nations to Financial Risks
RIJEKA, Croatia / WASHINGTON, DC – Global Financial Integrity (GFI) and Adriatic Institute for Public Policy (AI) have formed a strategic partnership to launch a new joint study on the Balkans’ illicit financial outflows via crime, corruption and tax evasion for the years 1991 through 2011. The in-depth study led by the joint leadership team consisting of GFI President Raymond Baker, GFI Chief Economist Dev Kar, AI Chairman Natasha Srdoc and senior staff members will provide detailed reports for each of the Balkan nations covering the 21-year time span. The GFI-AI research will focus on illicit financial outflows for the Balkan nations including Albania, Bosnia-Herzegovina, Bulgaria, Croatia, Greece, Kosovo, Macedonia, Montenegro, Romania, Serbia and Slovenia.
Leading Finance Ministers Offer Support to Developing Countries in Employing “New, Global Standard,” Eliciting Praise from Civil Society
GFI Disappointed in G20 Failure to Embrace Country-by-Country Reporting or Incorporation Transparency
WASHINGTON, DC – Over the weekend, the G20 finance ministers echoed the call by the G8 countries at Lough Erne to rapidly move to a system of automatic exchange of tax information, a move praised by Global Financial Integrity (GFI) as essential to cracking down on international tax evasion. As with the G8, the G20 finance ministers offered to provide support to poorer countries as they move to adopt the “new, global standard,” likewise eliciting support from GFI. However, the Washington-DC based research and advocacy organization expressed disappointment in the G20’s failure to embrace tax transparency for multinational corporations and the finance ministers’ reticence to meaningfully address the issue of phantom firms.
OECD’s “BEPS” Report to G20 Fails to Endorse Country-by-Country Reporting for Multinational Companies, a Necessary Precursor to Curtail Corporate Tax Dodging
G20 Should Embrace Disaggregated Accounting Standard
WASHINGTON, DC – A new report on tackling corporate tax dodging released today from the Organization for Economic Cooperation and Development (OECD) failed to embrace full country-by-country reporting for all multinational companies, eliciting disappointment from Global Financial Integrity (GFI), a Washington, DC-based research and advocacy organization. Grounded in its rigorous economic and legal research, GFI has for years recommended requiring multinational companies to publicly disclose sales, profits made, taxes paid, subsidiaries, and staff levels on a country-by-country basis as a necessary transparency measure to detect and deter abusive tax avoidance.
Tom Cardamone
Christine Clough, PMP
Five years after the financial crisis hit, the G8 finally seems to be serious about addressing the issue of financial opacity and illicit outflows. During a speech at the World Economic Forum in Davos earlier this year, UK Prime Minister and current G8 Chair David Cameron outlined his agenda for the Lough Eurne Summit to focus on a special blend of ‘T’: trade, tax, and transparency. He has called for “a more serious debate” on tax compliance and fairness, including the topics of automatic exchange of tax information and abusive tax avoidance. His transparency plan weaves strands of beneficial ownership disclosure and country-by-country reporting to his “golden thread” for development. The trade outline has a similar focus on openness, but it needs some direction.
E.J. Fagan, +1 202 293 0740 ext. 227
GFI Optimistic That Decision Will Not Ultimately Prevent Implementation of Strong Extractives Transparency in the United States
Organization Urges U.S. Securities and Exchange Commission to Promptly Revise and Reissue Rules
WASHINGTON DC – Global Financial Integrity (GFI) expressed disappointment today at the decision by Judge John D. Bates of the United States District Court for the District of Columbia to vacate key extractive industry transparency rules. The decision prevents the rules from taking effect until the Securities and Exchange Commission (SEC) revises the rules to address the court’s concerns.
The rules—which the SEC finalized last summer after two years of deliberation—implemented Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Also known as the “Cardin-Lugar provision,” this statute requires all oil, gas, and mining companies that report to the SEC to publicly disclose all of the payments they make to governments worldwide. The rules took effect in September of this year despite the lawsuit, with companies due to file their first reports in 2014.
E.J. Fagan, +1 202 293 0740 ext. 227
Despite Acknowledging Dangers of Phantom Firms, Obama Administration & G8 Fail to Endorse Public Corporate Ownership Registries
G8 Leaders Allow Multinationals to Continue Aggressive Tax Avoidance in the Dark
World Leaders Endorse Global Automatic Exchange of Tax Information, Transparency in Extractive Industries at Lough Erne Summit
WASHINGTON, DC – Global Financial Integrity (GFI) welcomed the statements from G8 leaders today reiterating the significant progress that has been made to crack down on international tax evasion and supporting a global standard of automatic tax information exchange, but the research and advocacy organization expressed disappointment in the White House and world leaders for failing to fully address the need for transparency in multinational companies’ basic financial reporting and in corporate ownership.
