Swiss non-profit Bread for All has highlighted a global annual shift of profits worth €80 billion from developing countries to low-tax jurisdictions like Switzerland.
In a recent report, the nonprofit threw the spotlight on Socfin Group as one such company that allegedly minimizes its tax burden through the use of such jurisdictions.
Socfin Group is a Luxembourg-based holding that engages in oil palm and rubber production in Africa and Asia. It has about 400,000 hectares of concessions in 10 countries.
It is 54-percent owned by Belgian businessman Hubert Fabri. The non-profit reported that Socfin has allegedly established its management and several subsidiaries in Switzerland for tax reasons.
It further added that a careful study of Socfin’s operations throughout Liberia, Sierra Leone and Cambodia demonstrated that its plantation managers appear to cut costs wherever possible, paying little for the land they lease, the tree crops they cut down, the workers they hire, and the corporate social responsibility projects that they have promised communities to implement.
According to the report, a large percentage of its generated profits ends up in Switzerland.
“It is important to know that Liberia is not getting the maximum benefits from the extraction of its natural resources,” Chairman of Alliance for Rural Democracy Liberia Paul Larry George said.
“Tax avoidance is part of the problem and it contributes to keeping the country poor, especially where corporations are mainly designed to make use of favorable tax regimes in other countries,” he added.
Although profit-shifting and tax avoidance are not necessarily illegal, they work against efforts to achieve global justice and shrink governments’ ability to fulfill their human rights obligations.
Socfin Group
Socfin Group was founded in 1890 by Adrien Hallet, who developed the methodical cultivation of rubber trees and palm oil in the Congo.
With a presence in 12 African and two Asian countries, the company’s portfolio includes Agripalma (Sao Tome-et-Principe), Brabanta (Democratic Republic of Congo), LAC (Liberia), Okomu (Nigeria), PSG (Ghana), SAC (Sierra Leone), Safacam (Cameroon), SCC (Cote d’Ivoire), Socapalm (Cameroon), SOGB (Cote d’Ivoire), SPFS (Cameroon), SRC (Liberia), Socfin KCD et Coviphama (Cambodia) and Socfindo (Indonesia).
Socfin’s shareholding structure is complex and includes cross-investments between holdings. It is 54-percent owned by Fabri, while the French group Bollore owns 39 percent.
Fabri is the chairman. He also holds several positions within the group, including vice chairman of Plantations des Terres Rouges and director of Bollore, Financiere Moncey, Financiere de l’Odet, and chairman of Societe Anonyme Forestiere et Agricole, among others.
Bread for All
Bread for All is the development service of the Protestant Churches in Switzerland. It empowers people and communities in Asia, Latin America and Africa to free themselves from poverty and dependency. It also motivates citizens in the northern hemisphere to commit to a fairer world.
