IMF, WORLD BANK CHIEFS FROWN AT TAG TAX DODGING, CLAIM IT IS...

IMF, WORLD BANK CHIEFS FROWN AT TAG TAX DODGING, CLAIM IT IS GRAVE CONCERN FOR GLOBAL ECONOMY

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IMF, WORLD BANK CHIEFS FROWN AT TAG TAX DODGING, CLAIM IT IS GRAVE CONCERN FOR GLOBAL ECONOMY

– IMF and World Bank Leaders Express Concern for Global Economy

– Jim Yong Kim Wants Government Officials Who Steal Public Funds Tracked Down

– Lagarde Asks for Global Cooperation to End Tax Avoidance

IMF, WORLD BANK CHIEFS FROWN AT TAG TAX DODGING, CLAIM IT IS GRAVE CONCERN FOR GLOBAL ECONOMY

The International Monetary Fund (IMF) and World Bank leaders have warned that the industrial scale of international tax avoidance revealed by the Panama Papers is a great concern for the global economy and is having a tremendously negative effect on the mission to end poverty.

IMF, WORLD BANK CHIEFS FROWN AT TAG TAX DODGING, CLAIM IT IS GRAVE CONCERN FOR GLOBAL ECONOMY
Jim Yong Kim

Following the words of World Bank President Jim Yong Kim, the indications that many of the world’s powerful and richest individuals are hesitating from paying millions as taxes and are thus hiding money offshore is a “great, great concern” and “very, very damaging” to the bank’s “mission to end extreme poverty”.

“When taxes are evaded,  state assets are taken and put into these havens, all of these things can have a tremendous negative effect on our mission to end poverty and boost prosperity.” Kim argued as he opened the Spring Meetings of the World Bank and IMF in Washington.

From her end, the IMF boss, Christine Lagarde said the Panama Papers, which was an unprecedented leak of 11.5m files from offshore law firm Mossack Fonseca, revealed that the (international tax) rules appear to be skewed towards those of global wealth.

“Clearly what has resulted from the review of these Panama Papers indicates that however important [international tax rules to prevent] base erosion and profit shifting … it is unfinished business.” She said in an opening address to the meeting.

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IMF, WORLD BANK CHIEFS FROWN AT TAG TAX DODGING, CLAIM IT IS GRAVE CONCERN FOR GLOBAL ECEONOMY
Christine Lagarde

Lagarde said more global cooperation is needed to stop tax avoidance and to ensure “the net does not have little loopholes here and there”. “A lot of things have gone global but there is one thing that has not gone global and that is tax. It is still very much a local affair.” She added. “International cooperation really has to be significantly improved and we are happy to play our part.”

“When we issue a report that is flabbergasting, indicating that work needs to be done by the country there has to be follow-up.”

According to Kim, he and Lagarde are working as aggressively as they can to track down tax evaders. He also warned anyone thinking about avoiding tax to be “very careful”.

“When former government officials leave a country and take stolen funds with them we have to track them down.” He declared.

IMF, WORLD BANK CHIEFS FROWN AT TAG TAX DODGING, CLAIM IT IS GRAVE CONCERN FOR GLOBAL ECONOMY

 Also in his expressions, Kim said he had been to many countries where the only ones who pay tax are those “too weak to refuse”. “You see systems where the rich don’t pay and the poor do. There is a comprehensive problem that we have to tackle.”

“Transparency is not going to move backward.” He stated. “The world is only going to become more and more transparent as we move forward.”

“Be very careful and also understand that leaders in developing countries all over the world are telling us that they want to work with us very strongly to track down these illicit flows to make sure the fair share of taxes are being paid. To make sure much of these assets that are taken literally out of the hands of governments and the poor can be re utilized for tackling poverty and inequality.”

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IMF, WORLD BANK CHIEFS FROWN AT TAG TAX DODGING, CLAIM IT IS GRAVE CONCERN FOR GLOBAL ECONOMY

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