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Tax evasion affects the poor countries badly

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Tax evasion harms the economies of the developing countries and causes losses more than three times of what they got from the subsidies of rich countries.

 A group of non-governmental organizations have warned of the seriousness of this matter, through a press conference held in the Swiss capital, Bern.

According to these organizations, the deposits of the poor countries in the Swiss banks are estimated at about 360 billion Swiss francs (US$ 331 billion). If the tax is paid from such smuggled money, it will generate financial resources estimated at six billion Swiss francs, at the time that the Swiss development aid is estimated at only one million francs. 

Since the Summit of G 20 that was held in London a few months ago, Bern succeeded in achieving a breakthrough at this level, as it has concluded bilateral agreements with the Kingdom of Saudi Arabia, Japan, France, but the Swiss government does not demonstrate the same interest to accomplish this with the developing countries.

Peter Nigli, director of the Swiss Coalition of Development Organizations considers this behavior as "a kind of double standard since the Swiss government imposes severe penalties on its citizens fleeing from the payment of taxes, but at the same time, provides safe havens for fleeing foreign taxpayers from the control of tax administration in their countries."

Switzerland may not be the only country which follows the policy of double standards in this field, but there are other many countries followed the same approach such as Austria and Luxembourg. But this country seems in a more critical situation in front of the growing international pressure, but non-governmental organizations are trying hard to take advantage of this situation in order to obtain some of the gains for developing countries.

"Since the eighties we asked the government to restructure the financial arena, but it maintained the banking secret, giving us its back, but today, if finds itself obliged to do this having no long time to take action"  Peter Nigli said

On the other hand, these organizations believe that the current economic crisis provides an opportunity for countries accused of covering up the phenomenon of tax evasion of which Switzerland is one of them, to reconsider their tax policies and to urge the others to do that also.

Peter Nigli said in this regard "instead of bewailing the luck and defending unfair tax system, these countries should engage strongly in international efforts so as to demolish the sources of tax evasion forever."

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