Facebook, Google and Microsoft avoiding $3bn in tax in poorer nations

WION Web Team
NEW DELHI Published: Oct 26, 2020, 02.21 PM(IST)

(Representative Image) Photograph:( Reuters )

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As per the research of ActionAid International, the huge amount lost from the 'tax gap' could have been used to pay for more than 700,000 new teachers or 850,000 primary school teachers.

The technology giants of the United States evading almost $2.8bn tax a year in developing countries by using the flaws in the global tax rules, said the ActionAid International in a report.

Big US technology companies like Facebook, Google and Microsoft have been blamed for neglecting to pay a considerable lot of taxes in small and poor nations where governments are attempting to give even essential medical care or instruction to their residents.

The aid charity said its research showed that the developing nations with the highest "tax gaps" from Google, Facebook and Microsoft are India, Indonesia, Brazil, Nigeria and Bangladesh.

ActionAid is a global federation working for anti-poverty and anti-injustice projects around the world.

As per the research of ActionAid International, the huge amount lost from the 'tax gap' could have been used to pay for more than 700,000 new teachers or 850,000 primary school teachers.

“Little is known about how much tax these companies are currently paying in developing countries, as they are still not required to publicly disclose this information,” ActionAid said. 

“This research shows, however, that billions could be at stake in the long-overdue reform of international corporate taxation – enough to transform underfunded health and education systems in some of the world’s poorest countries.”

(With inputs from agencies)

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