A third of world oil, mining in tax havens

More than one third of subsidiaries of the world’s 10 leading oil and mining companies are listed in offshore tax havens or in jurisdictions allowing shady finances, according to a report published yesterday.
In all, 2,083 of the 6,038 subsidiaries (34.5 percent) controlled by the world’s 10 leaders in these fields are listed in countries with so-called “secrecy jurisdictions, which have the potential to be used by companies in complicated ownership structures to shroud revenues and profits,” the Norwegian branch of Publish What You Pay (PWYP) reported.
The study, titled “Piping profits: the secret world of oil, gas and mining giants,” reviews the structures of energy goliaths ExxonMobil, ConocoPhillips, Chevron, BP and Shell and mining groups Glencore International, Rio Tinto, BHP Billiton, Anglo American and Baarick Gold Corporation.
Alone, these companies pulled in combined sales last year of USD 1,824 billion, posted a net profit of USD 144.7 billion, and paid USD 106.9 billion in taxes, according to the report.
Listing divisions in offshore jurisdictions can “hinder efficient markets, level playing fields and improved governance,” the report lamented.
“Even worse, the same structures can potentially encourage corruption and aggressive tax avoidance, so depriving citizens in least developed and emerging nations of manifold political, economic and social opportunities,” it added.
“Many multinational companies are adept at using controversial techniques to significantly reduce perceived profits. This in turn means they pay less tax in revenue generating countries,” the report said, stressing though that it was not accusing the 10 companies listed in the report of tax evasion.