IFC financing companies involved in tax evasion

12 February 2010

A Eurodad report Is the International Finance Corporation supporting tax evading companies? released in December 2009 accuses the IFC, the Bank’s private sector lending arm of providing financial support to companies and banks that use tax havens. According to the report, each year developing countries are estimated to lose $1 trillion through illicit flows, 65 per cent of which originates from tax evasion and avoidance schemes driven by commercial actors that operate through tax havens or secrecy jurisdictions. The report finds that the IFC has not yet taken leadership to address civil society concerns about specific IFC-backed operations involving private actors that use secrecy laws and tax havens.