|Multi-National Tax Avoidance & Its Implications|
Multi National Tax Avoidance
Implications For Nations Around The World
September 2014 / International Affairs / News & Analysis / Queens Buzz. By Michael Wood. Tax avoidance by the large multi-national corporations has been growing worldwide. Government officials say it threatens to deprive governments and communities of much needed resources to provide their citizenry with adequate community infrastructure like transportation, housing, healthcare and education.
Multi-national tax avoidance has long been a problem for developing nations, such as in South Africa. President Thabo Mbeki says his country loses significant sums of tax revenue through corruption, criminal activities and multi-national tax avoidance schemes. Mbeki estimated that the continent of Africa loses $50 billion per year. Thus he joined a UN sponsored group entitled High Level Panel On Illicit Financial Flows which hopes to identify solutions / approaches to the growing worldwide problem.
Multi-national tax avoidance has also become a growing problem in the United States. U.S. President Barack Obama identified multi-national tax avoidance as a possible campaign issue for the 2014 interim elections. Several years ago, it was publicized that multi-national General Electric's effective U.S. tax rate was under 2% throughout most of the first decade of the 21st century, while the company earning in the neighborhood of a couple hundred billion dollars in profits. In the United Kingdom, Starbucks was identified as one of the skillful corporate tax dodgers since they first began operating in the U.K. in 1999.
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|BRICS Summit & Development Bank|
BRICS Summit 2014
BRICS Development Bank & Implications For The Western World
August 2014 / International Affairs / News Analysis & Opinion / Queens Buzz. By Michael Wood. The sixth annual BRICS Summit was held in Fortaleza, Brazil beginning July 14 and ending July 16. BRICS is an international group comprised of five of the largest developing countries in the world. The name of the group includes the first letter of each nation's name and includes Brazil, Russia, India, China and South Africa.
This year South Africa was added as an offical member. South Africa had attended prior sessions as a special guest. This year Argentina was invited as a special guest.
BRICS Development Bank Created With $100 Billion
The biggest achievement of the summit was the creation of the BRICS Development Bank which was to be headquartered in Shanghai, China. This is a significant step for China becoming the banker to the developing world. Financing developing nation's growth is an effort that the Chinese have been working on for over a decade and hence this is another step in that direction. The BRICS Development Bank will start with $100 billion, with an additional $100 billion in a reserve currency pool.
The BRICS Development Bank is considered a rival to the United Nations administered World Bank which is based in Washington, D.C. as well as to the International Monetary Fund [IMF] which is also based in Washington, D.C. The BRICS nations have been frustrated in their calls for reforms of what appear to be a half century old world view.
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