Who profits from a weakened international taxation system: MNCs, the super-rich or states?

The fact sheet examines how loopholes in the international tax system allow multinational corporations (MNCs) and the super-rich to avoid taxes, resulting in an estimated US$492 billion in global revenue losses for governments in 2024. It critiques the OECD/G20 Two-Pillar Solution for favoring developed nations and lacking transparency, while advocating for the 'Taxing the Super Rich' initiative and the establishment of a UN Framework Convention on International Tax Cooperation to ensure more democratic and progressive global taxation.

• Cross-border tax abuses led to an estimated US$492 billion in global revenue losses for governments in 2024, limiting the funds available for public health, education, and infrastructure.
• Wealth inequality is extreme, with global billionaire wealth growing three times faster in 2024 than in 2023. In South Africa, the top 10% of the population holds 86% of the aggregate wealth.
• Multinational corporations (MNCs) exploit outdated tax laws and the digital economy to shift profits to tax havens. This is facilitated by the fact that two-thirds of global trade occurs between branches of related companies.
• The OECD/G20 Two-Pillar Solution Framework aims to address digital economy challenges and introduce a 15% global minimum corporate tax, but it is criticized for being biased toward developed countries.
• The Two-Pillar Framework is deemed insufficient in revenue generation, with a potential $100 billion annual gain compared to an estimated $600 billion lost annually to tax avoidance, primarily affecting developing nations.
• While Brazil's G20 Presidency prioritised 'Taxing the Super Rich', the document states that South Africa's National Treasury has not appeared committed to driving this agenda forward during its own presidency.
• Developing countries, particularly the Africa Group and G77, are pushing for a UN Framework Convention on International Tax Cooperation to replace or surpass the OECD-led process with a more democratic structure.

APA

Institute for Economic Justice (2025). Who profits from a weakened international taxation system: MNCs, the super-rich or states? https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet2-International-taxation-web-3.pdf

Chicago

Institute for Economic Justice. Who profits from a weakened international taxation system: MNCs, the super-rich or states? 2025. https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet2-International-taxation-web-3.pdf.

Wikipedia

{{cite report |author=Institute for Economic Justice |title=Who profits from a weakened international taxation system: MNCs, the super-rich or states? |date=August 2025 |url=https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet2-International-taxation-web-3.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{instituteforeconomicjustice2025who, author = {{Institute for Economic Justice}}, title = {{Who profits from a weakened international taxation system: MNCs, the super-rich or states?}}, institution = {Institute for Economic Justice}, year = {2025}, month = aug, url = {https://iej.org.za/wp-content/uploads/2025/08/IEJ-G20factsheet2-International-taxation-web-3.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }