Tax avoidance by multinational corporations: how to build alliances for reform: Yet, the reforms undertaken in recent years are insufficient to eliminate tax avoidance by multinational corporations

The digital economy makes it even easier for multinational corporations to reduce their tax liabilities by registering in low-tax countries while doing business elsewhere. The media coverage about high profile cases of tax avoidance, such as the Luxembourg Leaks and the Paradise Papers, has raised public awareness of the scope of the problem and generated momentum for reform. The OECD estimates that 4 to 10 per cent of global corporate tax revenues are lost due to avoidance and evasion practices by firms. Yet, the reforms undertaken in recent years are insufficient to eliminate tax avoidance by multinational corporations. The difficulties of achieving reforms result not from a lack of reform proposals, but from the challenges of reaching consensus, both domestically and internationally.