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Tax avoidance by mining companies in developing countries

Publication date:

2 016


Ministry of Foreign Affairs of the Netherlands

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Ministry of Foreign Affairs of the Netherlands

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Negotiation stage:

1. Legal & Policy Framework


Investment Mining

Long description:

Despite the fact that some developing countries are rich in mineral resources, a potential source of large revenues, they often fail to develop sufficiently in order to improve the welfare and prosperity of their population. This is in part because the mining companies that profit from these resources do not always pay their fair share of taxes in mining countries, by using international tax avoidance structures. According to a report released in 2015 by the High Level Panel on Illicit Financial Flows from Africa, headed by the former South African president Thabo Mbeki, “aggressive tax avoidance” plays an important role in depriving African countries of the resources needed for social services, infrastructure and investments.
The Netherlands could be involved in this tax avoidance, as many international mining groups have established holding and financing companies in the Netherlands, through which they invest in developing countries. This research project, undertaken by Profundo for the Dutch Ministry of Foreign Affairs, in collaboration with the Offshore Kenniscentrum (OKC), studies this issue further and explores potential policy initiatives the Dutch government could take to address the issue.


Africa Europe

Roadmap references:

Government Policies and Strategies: Assess, Formulate and Reform Implementation and Monitoring of the Investment Stage


Fiscal Regime Investment Incentives Investment Policies


Fiscal Regime Investment Treaties Investment Policies