Nearly 40% of global investments made for tax optimization purposes

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GAFA is a company specializing in tax optimization. Reuters

Nearly 40% of foreign direct investment by multinational companies around the world is for tax optimization purposes, according to a study by the IMF and the University of Copenhagen. These investments go through empty companies.

Foreign direct investment is considered strategic and stable in the long term. It aims to create economic activity and jobs in the host country. Except that according to a study by the IMF and the University of Copenhagen, 40% of global direct investments, or $ 15 trillion, are ghost capitals, because they go through companies that do not real economic activities.

The study points out that nearly half of these investments go through companies located in European countries such as Luxembourg, the Netherlands or Ireland. Then come overseas countries like the British Virgin Islands.

Apple, tax optimization specialist

The authors take Apple as an example. The American multinational does not produce its devices in Ireland, nor does it conceive them there, yet one of the largest foreign direct investments in the United States is Apple's participation in its Irish subsidiary.

The study also confirms the position of France, which decided alone to tax the digital giants. These companies transfer the profits made in France to low-tax countries.