OXFAM REPORT
Europe’s top banks still use tax havens
Luxembourg and Ireland remain the favourite destinations for 20 of Europe’s biggest banks, a new Oxfam report says
Brussels — The 20 biggest banks in the eurozone booked more than a quarter of their 2015 profits in tax havens, with Luxembourg and Ireland the favourite destinations, a report by Oxfam said on Monday. The findings come as the tax affairs of major multinationals are under the microscope after revelations in the LuxLeaks and Panama Papers scandals showed the methods used by big companies to avoid taxes. "New EU transparency rules give us a glimpse into the tax affairs of Europe’s biggest banks and it’s not a pretty sight," said Manon Aubry, a tax specialist at Oxfam. "Governments must change the rules to prevent banks and other big businesses using tax havens to dodge taxes or help their clients dodge taxes." The report said tax havens accounted for 26% of the profits made by the 20 biggest banks in Europe, adding up to about €25bn. By example, Barclays, Europe’s fifth biggest bank in 2015, booked profits of €557m in Luxembourg and paid only €1m in taxes, an effective tax rate of 0.2...
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