Tax avoidance drives nearly 40% of global FDI: IMF

Nearly 40% of worldwide foreign direct investment (FDI), amounting to $15trn, "passes through empty corporate shells" with "no real business activities", a study by the IMF and the University of Copenhagen reveals. According to the report, ten economies including Luxembourg, the Netherlands, Hong Kong, BVI, Switzerland, Singapore, Ireland, the Cayman Islands and Mauritius host more than 85% of those $15trn phantom investments. Luxembourg's roughly $4trn in phantom FDI inflows alone are equivalent to annual direct investment in the U.S., according to the report. "Even if the empty c...