A charity report detailing the billions of pounds lost to developing countries as a result of tax evasion has been launched today.

Paying our Dues: How Tax Dodging Punishes the Poor, released jointly by Christian Aid Scotland and the Church of Scotland, also calls for a specific international reporting standard that would be used globally.

The organisations claim that large-scale businesses deliberately shift their profits between countries around the world enabling them to lessen their tax bill or even erase it altogether.  

The report calls for a standard requiring large-scale corporations to state their profits across the areas in which they operate.  

Large-scale tax evasion has been recognised by major groups such as the Organisation for Economic Co-Operation and Development (OECD) as having a major impact on developing countries. The report states that it costs more than the amount received in aid. Christian Aid has estimated that the total loss may be up to $160bn each year, approximately one and a half times the world’s budget in annual aid.

The need to combat this ongoing issue was brought up by the UN in their latest statement on the Millennium Development Goals.

Kathy Galloway, head of Christian Aid Scotland, said: “It is shameful that companies which make large profits from the resources of these countries should be dodging fair taxes.” This, she said, has been referred to as "the ugliest chapter in global economic affairs since slavery".

Church of Scotland members are expected to join Christian Aid’s supporter day on 20 April.