Building awareness of tax justice in Europe and Sub-Saharan Africa

GÖD-FSG/GdG-KMSfB/EPSU meeting

24 June 2015, Vienna, ÖGB headquarters

As part of an EC-funded project, EPSU and Austrian affiliates GÖD-FSG and GdG-KMSfB organise a training seminar to discuss corporate flight, recent initiatives to curb tax dumping and what trade unions can do to develop a fair and progressive tax regime to finance quality public services and contribute to the UN Millennium Development goals. Corporate tax avoidance has become a major concern of public interest. The tax gap in Europe, i.e. the difference between tax owed and tax paid, is estimated at € 1 Trillion per year. Instead of cutting down on public service pay and jobs to make up for public debts and deficits, public service trade unions call for tough action against tax dodgers.

Tax justice is also an essential development tool. Whilst developing countries receive around € 56.6 bn in foreign aid from EU and member states, between 7 and 10 times as much money is lost through illicit financial outflows annually, a large part of which through a variety of tax avoidance schemes including transfer pricing that shifts profits from developing to developed countries. Africa alone may be losing between 7% and 8% of its GDP through tax avoidance schemes.