Evasion arising from international operations by multinational enterprises and high net worth individuals

Tax evasion is not just a domestic issue: the more a country is engaged in the world economy, the greater the potential erosion of its tax base —the problem of so-called fiscal termites. These termites exist because of the proliferation of avoidance mechanisms, making it helpful to differentiate between three sources of erosion: (a) the burgeoning of tax incentives already described, (b) profit shifting and aggressive tax planning and (c) illicit financial flows arising from international trade and capital movements.

Sustainable Development Goals:

Decent Work and Economic Growth

Industry, Innovation and Infrastructure

Peace, Justice and Strong Institutions