Netherlands responsible for 17% of $301 billion annual tax avoidance by businesses

The Netherlands is responsible for 17 percent of the 301 billion dollars in tax avoidance committed by companies per year, according to calculations by the Tax Justice Network. That makes the Netherlands one of the main parties in global corporate tax avoidance, NRC reports.

Two years ago, the Tax Justice Network calculated that 6.3 percent of tax avoidance by companies happened through the Netherlands. The organization described the country as part of an “axis of tax avoidance” that is jointly responsible for half of all corporate avoidance.

In the meantime, the Netherlands has taken some measures to make corporate tax avoidance more difficult. Arnold Merkies, coordinator of the Tax Justice Network’s Dutch sister organization, told NRC that the Netherlands' increased share is more likely because Tax Justice now has a more complete picture of the money flows than because tax avoidance through the country increased so significantly.

According to the Tax Justice Network, governments worldwide lose 472 billion dollars per year due to tax avoidance. Wealthy individuals cause 171 billion in tax losses by diverting their money, and companies cause 301 billion in losses by registering their profits elsewhere.