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G20 Countries Miss Out on Billions in Taxes from Tech Giants

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The G20 countries lose up to 26 billion euros in tax revenue annually from the five major US technology companies Amazon, Apple, Facebook, Microsoft and Google parent Alphabet. That says human rights organization ActionAid.

 

“An amount that could have bought two doses of corona vaccines for all people in the world.”

Today a special G20 summit will be held on how to tackle the corona pandemic. According to ActionAid, big tech companies miss out on billions of dollars in potential tax revenue every year. “They made a huge profit during the pandemic because they can easily avoid taxes, while that money is desperately needed for health care, for example,” said the human rights organization.

This is especially true in the less developed countries of the world, where the health care system was already inadequate before the pandemic. ActionAid says that with fair tax rules, Nigeria, for example, could have collected an additional $ 100 million in taxes from the five companies, enough to pay the annual salary of 70,000 nurses. Bangladesh is potentially missing out on more than $ 49 million, enough for the annual salary of 12,800 nurses.

ActionAid is calling for a solution that ensures that companies have to pay taxes where their activities actually take place. The organization is also pushing for a minimum tax to force tax havens to stop facilitating tax avoidance. Moreover, it is important that developing countries can participate in equal decision-making.

People are increasingly outraged by the unfair competition and excessive profits of the tech giants. While public services worldwide are under great pressure and the pandemic has painfully exposed the inequalities in our economic and health systems, it is childishly easy for tech giants to pay barely any tax under current tax rules,” says Gijs Verbraak of ActionAid.

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