Chapter 4 | Page 162 developing States which result in poor enforcement and high levels of tax evasion and avoidance. Tax evasion and avoidance create problems for all countries, but their negative impact is particularly serious for developing countries given their low tax base and weak institutional capacity. The Tax Justice Network estimates that more than US$3.1 trillion was lost to tax evasion globally in 2011, which is significantly larger than the total international aid received by all developing countries.102 It is also estimated that countries in Africa alone lose more than US$79 billion annually due to tax evasion, which is almost equal to the total expenditure for health and education in the whole continent.103 The International Bar Association’s Tax Abuses, Poverty and Human Rights report in 2013 classifies tax abuses as ‘tax evasion, tax fraud and other illegal practices − including the tax losses resulting from other illicit financial flows such as bribery, corruption and money laundering.’104 Base erosion and profit shifting (BEPS), tax holidays and offshore investment accounts are also relevant to tax abuse.105 Tax havens encourage multinationals to take advantage of low tax rates and lax regulatory environments to avoid and/or evade taxes. Some estimates place the amount of lost revenue for developing countries between US$1.26 and US$1.44 trillion, most of which results from the trade mis-pricing practices of multinational corporations.106 Tax evasion may be encouraged by the increase in capital movement and the lack of capacity of governments to monitor these movements and individual transactions. Mispricing and transfer pricing techniques are commonly used by multinational corporations to divert 102 The Tax Justice Network, 'The Cost of Tax Abuse' (Briefing Paper on the cost of tax evasion worldwide, The Tax Justice Network), <http://www.tackletaxhavens.com /Cost_of_Tax_Abuse_TJN%20Research_23rd_Nov_2011.pdf>. 103 Ibid. 104 International Bar Association, Tax Abuses, Poverty and Human Rights London, 2013), <http://www.ibanet.org/Document/Default.aspx?DocumentUid=4977CB3D-4988-4C9C84C7-9050A5CB2311>, 7. 105 See for example, Dhammika Dharmapala, 'What Do We Know about Base Erosion and Profit Shifting? A Review of the Empirical Literature' (2014) 35(4) Fiscal Studies 421-448; Gillian Brock and Thomas Pogge, 'Global Tax Justice and Global Justice' (2014) 1(1) Moral Philosophy and Politics 1-15. 106 Itriago, above n 18, 5.