Transparency & Accountability • 23 Mar 2009
Letter on the EIB's policy in fighting tax avoidance and the off-shore financial industryBack to overview
Counter Balance sent an an activist kit 'fight capital flight' that tackles tax havens and off-shore financial industry to EIB President Philippe Maystadt. This kit has been produced by the European Debt and Development (EuroDAD)Network and has been sent to all key decision-makers in European capitals and European institutions.
Off-shore financial centres have played a key role in the unprecedented financial crisis. As you will be aware, most hedge funds and special investment vehicles for securitisations are based in well-known tax havens. Conservative estimates point to approximately USD 1,000 billion – ten times global Official Development Assistance – leaving developing countries, mostly via tax havens. This happens through illicit financial flows, but the bulk of the problem is related to the practice of abusive transfer pricing by multi-national companies. Such extensive capital flight totally undermines the potential for sustainable development for the world’s poor.
Download the full letter below. You can find the response from the EIB here.