The problem had long seemed intractable, with the US nixing any attempts at substantive change. 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%. In one case, an American company called Global Crossing was accused by Mauritians of using its subsidiaries to funnel money into offshore accounts. The US has long resisted India'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%. In one case, an American company called Global Crossing was accused by Mauritians of using its subsidiaries to funnel money into offshore accounts. The US has long resisted India's attempts to force multinationals to pay tax where they earn revenue.