Tax evasion

Cross-border capital movements that serve to conceal illegal activities or evade taxation have been recently placed at the centre of the international agenda. Trade misinvoicing, profit shifting by multinational corporations, and offshore bank deposits to conceal the proceeds of crime or simply to avoid taxes, all deprive national treasuries of much needed resources. Resources which could otherwise be invested in development. Vulnerable populations in developing countries are the most affected by the harmful consequences of illicit financial flows.