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Video: Inside Story – Tax avoidance: Legality vs morality

February 28, 2013

By EJ Fagan

EJ Fagan was New Media Coordinator for the FTC from 2011-2013. He is now Deputy Communications Director for Global Financial Integrity. You can follow him on Twitter @ejfagan.

Below is a must-see video from Al Jazeera English, reporting on the report by Action Aid UK on tax avoidance by sugar companies in Zambia. The report finds that British Foods Group, a major supplier of sugar in Zambia, made a profit of $123 million since 2007, but paid virtually no taxes. The losses include over $80 million in funds moved to tax havens, and a $47 million ‘management fee’ from British Food Group’s Irish subsidiary. And this is all in addition the billions of illicit dollars leaving Zambia every year.

Chris gives the example of a small farmer in Zambia, who pays more in corporate tax every year than a multinational British company in the same industry, despite her children going to bed hungry many nights.

And if you haven’t seen Action Aid’s excellent infographic on the report, click here.

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Disclaimer: Unless specifically stated to be the views of the Financial Transparency Coalition, the opinions expressed on this blog are solely the opinions of the individual blogger and are not necessarily those of the Financial Transparency Coalition.

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