A database created by researchers showed that nearly 40% of the profits earned by multinational corporations in the world are moved to tax havens every year. In India, 5% of corporate revenue is lost due to this shifting of profits to tax havens, the study showed.
The research, based on 2015 estimates, showed that multinational companies shifted over $650 billion in profits to tax havens, which reduced international corporate tax receipts by nearly 10%. The study, conducted by researchers from the University of California, Berkeley and the University of Copenhagen, showed how much each country loses in profit and tax revenue to these tax havens.
India loses $9,718 million (approximately Rs 69,000 crore) in profits to tax havens across the world. Out of the total revenue, 2%, to the tune of $3,440 million, go to tax havens in the European Union, while 3%, or $5,988 million, in profits goes to non-European Union tax havens.
The tax havens for Indian firms in the European Union are in countries such as Belgium, the Netherlands, Malta, and Ireland, among other countries. Switzerland, Hong Kong, Singapore, and Bermuda are the non-European Union tax havens.
Among other nations, Russia lost the highest with 6% corporate tax revenue to the tune of $2,482 million (approximately Rs 17,000 crore). China lost 3% of its corporate tax worth $12,993 million, while Turkey also lost 5% of its corporate tax revenue to the tune of $3,553 million.
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