29.09.2021. European banks book € 20 billion in tax havens every year

Company News

Europe’s biggest banks are booking an average of 20 billion EUR ($ 23.7 billion) in tax havens every year, according to a new report made by EU tax observatory.
That accounts for 14% of their total profits, the analysis found.
The report looked into the activities of 36 systemic European banks, headquartered in 11 countries across Europe, that have been subject to mandatory country-by-country reporting on their actions since 2015.
Seventeen jurisdictions were included in the report’s tax haven list: the Bahamas, Bermuda, the British Virgin Islands, the Cayman Islands, Guernsey, Gibraltar, Hong Kong, Ireland, Isle of Man, Jersey, Kuwait, Luxembourg, Macao, Malta, Mauritius, Panama and Qatar.
Across the whole of Europe, the 2020 rate was 19.03%, with the rate of corporate tax on the continent also seeing a gradual decline since 2014. Rates vary between European countries.
130 countries backed an OECD plan to reform international frameworks in a bid to ensure multinational companies pay a fair share of tax wherever they operate. The reforms include plans for a global minimum rate of 15% for corporation tax, which the OECD estimates would generate around $150 billion in additional global tax revenues every year.