Leaked documents from a Mauritian law firm have revealed how Western multinationals avoid paying tax in developing countries . The firms involved include GE Capital and anti - poverty activist Sir Bob Geldof 's African investment fund . The leak of 200,000 files , dubbed the Mauritius Leaks , shows a link between investments made and tax paid , through complex arrangements via tax haven Mauritius , where the tax rate for foreign multinationals is around 10 % . Tax avoidance costs poor economies up to $ 100bn annually , 6 % of sub - Saharan Africa 's GDP . The US has long resisted Britain 's attempts to force multinationals to pay tax where they earn revenue .
Leaked documents from a Mauritian law firm have revealed how Western multinationals avoid paying tax in developing countries. The firms involved include Sequoia Capital and anti-poverty activist Sir Bob Geldof's African investment fund. The leak of 200,000 files, dubbed the Mauritius Leaks, shows a mismatch between investments made and tax paid, through complex arrangements via tax haven Mauritius, where the tax rate for foreign multinationals is around 3%. Tax avoidance costs poor economies up to $100bn annually, 6% of sub-Saharan Africa's GDP. The US has long resisted India's attempts to force multinationals to pay tax where they earn revenue.