• Register
Return to: Home > News > Big Four > Companies profits on the rise while corporate tax drops, Oxfam

Companies profits on the rise while corporate tax drops, Oxfam

Over the last 30 years the net profits of the world’s largest companies more than tripled while the corporate tax receipts are falling across the world, according to a report by NGO Oxfam.

Oxfam report entitled, Tax Battles: the dangerous global race to the bottom on corporate tax, also includes the NGO’s own list of the “world’s worst tax havens”.

The report looks at corporate tax from two angles: first the impact of corporate tax havens on the global economy and second corporate tax competition between states, which the NGO brands as a race to the bottom.

In its report, Oxfam is critical of the BEPS project by the OECD, as it says that the developing economies which are hit the hardest by tax dodging didn’t have an equal seat at the negotiation table with G20 economies such as Switzerland, the Netherlands and Luxembourg who are on Oxfam list of corporate tax havens.

The NGO is also critical of tax advisors and accountancy firms, especially the Big Four, not only for helping their clients devising tax schemes but also for their influence to governments.

“The Big Four accounting firms (Deloitte, EY, KPMG and PwC) are major providers of technical expertise to policy makers in many countries (both for lucrative fees and by offering pro bono services and secondments that may generate sellable knowledge). As a result, the Big Four have the potential to exert enormous influence, positive or negative, over tax policies and the administration of tax,” the report read before giving some example of negative influence in the USA, the Netherlands and Ireland.

The OECD and KPMG declined to comment. Deloitte, PwC and EY did not respond to our enquiries at the time of publication.

Top Content

    Nigeria: building compliance and engagement

    Opportunities created by regulatory and legislative changes in Nigeria are tempered by the fragile state of the economy, although practitioners are generally confident that conditions will improve over the next few years if appropriate steps are taken. Paul Golden reports.

    read more

    Ghana: a quest for consistency

    Ghana’s current economic profile would suggest a fertile landscape for purveyors of accounting services. But inconsistent approaches to compliance and application of standards – coupled with problems in the banking sector and consequent liquidity constraints – have created a challenging environment. Paul Golden writes.

    read more

    Drone technology: audit takes to the skies

    The movement towards a digitised era has already impacted the auditing profession in a number of ways, from blockchain to artificial intelligence. Now firms are taking to sky and using drone technology in their audits. Mishelle Thurai speaks to Big Four firms to find out more.

    read more

    SBC: a new alliance joins the market

    Jonathan Minter speaks to Paul Tutin, chair of founding firm Streets Chartered Accountants, about why the business and its European partners took the decision to launch their own association.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.