Tax Evasion by Transnational Companies Affects Paraguayan Economy

Asuncion, Mar 22 (Prensa Latina) The volume of tax evasion of transnational companies based in Paraguay is even higher than drug trafficking, said economist Verónica Serafini, who calculated that the profits achieved by foreign investors in 2012 reached billions of dollars, however the country did not receive tax contributions of the same magnitude.

The is because the current development model is not working, she said, adding that Paraguay recognizes that the losses derived from tax evasion by big transnational companies are huge due to the transfer of resources from an economy with less incomes to developed states.

The expert form the Center for the Analysis and Dissemination of the Paraguayan Economy noted that in spite of the profits obtained by large foreign investors, the net balance of international flow was negative for countries like Paraguay.

Serafini called the attention on Paraguay’s low indicators regarding the Sustainable Development Goals and stressed it was very important for the country to be part of the widespread debate about domestic finances focused on the level and quality of tax systems.

Finally, Serafini said Paraguay is one of the nations that are more rapidly destroying natural resources by privatizing them.