Tuesday, March 26, 2013

Most foreign investment in BRICs isn’t foreign at all—it’s tycoons using tax havens

From Naomi Rovnick at Quartz:
"Each of the BRICs have big problems with tax dodging, which saps billions from national treasuries and—in the case of Russia, India, and China—suggests the newly rich are failing to share the wealth with the poor.
. . .
The clearest sign that BRICs are leaking tax revenues is that each country’s biggest source of outside investment is a tax haven. China counts the tiny Caribbean bolthole of the British Virgin Islands as its biggest source of foreign investment (not including the Chinese territory of Hong Kong). India has Mauritius, Russia has Cyprus, and Brazil has the Netherlands."
Now read on. It's a great article.

NB: The IMF searchable database that the report cites is excellent. This particular TJN blogger hadn't seen it before.


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