UK tops global table of damaging tax deals with developing countries

Treaties limit the tax poorer nations can place on British companies doing business within their borders, says ActionAid

The UK has signed a high number of tax deals with some of the world's poorest countries, potentially depriving those states of millions in tax revenues every year, according to an analysis by ActionAid.

Tax treaties are legal agreements between two countries on how each can tax capital flowing from one jurisdiction to another. In theory they are established to prevent double taxation - where income is taxed in two jurisdictions - but in practice many agreements limit the tax poorer nations can place on companies doing business within their borders.