A Demos report states: “Large multinational companies, for example, continue to squeeze their tax contributions ever lower: the OECD estimates that US$100–$240bn (£78bn-£186bn) is lost globally in revenue each year from base erosion and profit shifting by multinational companies.”
Almost three-quarters of companies who have been given major government contracts have operations based in tax havens, according to a new report.
Value Added, published on Sunday by the thinktank Demos, reveals that 25 of the government’s 34 strategic suppliers – organisations that receive £100m or more in revenue from the government – operate in offshore centres.
According to estimates, they account for about a fifth of total central government procurement spend. Of these, 19 had operations in jurisdictions included on the EU’s “blacklist” or “greylist” of countries that are considered to be non-compliant with EU international standards for “good tax behaviour”, according to the report.Procurement is the UK government’s largest expenditure, valued at £284bn. Of the 25 organisations with links to tax havens, 20 benefited from contracts worth a combined £41bn awarded between 2011 and 2017.