UK ranks third in Europe for most money lost to unpaid corporation tax

Wednesday, June 22, 2022 3:47 p.m.

The UK ranks third among European countries for the most money lost due to corporate tax abuse on an annual basis.

The European country losing the most money to corporate tax abuse is Germany where, on an annual basis, around £27.3 billion goes unpaid.

Next is France where losses from tax abuse total £27.2bn, according to research by tax refund agency RIFT Tax Refunds, shared with City AM today.

The UK ranks third with losses of £21.2bn a year, followed by Spain (£4.3bn) and Luxembourg (£2.2bn).

The firm analyzed data on the money lost to corporate tax abuse in a host of foreign countries, before applying that figure to each country’s annual GDP to reveal where this corporate greed businesses cost the economy the most.

However, when the losses are measured as a percentage of the gross domestic product (GDP) of each respective country, Luxembourg suffers more than any other country with a missing corporation tax equivalent to 3.77% of GDP.

Next come France (1.29%), Hungary (0.99%), the United Kingdom (0.96%) and Germany (0.89%).

The countries whose corporate tax losses correspond to the smallest percentage of GDP are Ireland (0.02%), Finland (0.10%), Malta (0.10%), Latvia (0.11 %) and Italy (0.11%).

“With the general public facing a cost of living crisis and no sign of meaningful tax cuts underway, it is somewhat infuriating that the biggest corporations are costing the UK economy over £21billion every year by shirking their responsibilities to pay taxes,” RIFT Tax Refunds CEO Bradley Post told The Post.

“This is a clear case of corporate greed and those in power should do more to reduce the breathing room these corporations are able to find when ordinary families are struggling to survive,” he concluded. .

Mary I. Bruner