Shell Companies Hide $15 Trillion From Taxes, Study Reports

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“Phantom capital” helps shields companies from higher bills.

The study found that ten economies, including Ireland, host nearly 85% of the world’s phantom capital.Although world leaders have sought to keep companies from avoiding taxes, the amount avoided has actually gone up over the past decade⁠—and

by the International Monetary Fund shows that $15 trillion is held in shell companies across the world for that specific purpose, depriving local economies of tax revenue.is 40% of the world’s foreign direct investment , a term for money transferred across borders between firms belonging to the same parent company.

Even though the host countries don’t collect taxes on phantom FDI, they do make some money from performing accounting and other financial management services for the companies. The study also found that phantom capital makes it difficult for world leaders and financial institutions to understand the impact of FDI on economic growth.What to watch for:

Another upcoming study from the International Monetary Fund. It’s promised to show which FDI is phantom and which is actually used to help local economies.

 

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marcorubio wow if only Congress would act

Tip of the tax iceberg

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