Chilean authorities are poised to recover over $1.5 billion in unpaid taxes, thanks to a series of investigations led by the International Consortium of Investigative Journalists (ICIJ). The information, drawn from Chile’s tax agency, Servicio de Impuestos Internos (SII), was obtained by ICIJ media partners CIPER Chile and LaBot through freedom of information requests. The staggering sum primarily stems from audits launched after high-profile investigations such as the Paradise Papers, Panama Papers, and Bahamas Leaks.

This anticipated windfall comes from over 200 audits initiated in the wake of revelations from these global leaks, with the majority of the unpaid taxes tied to the Paradise Papers. This 2017 investigation shed light on the ways corporate giants, including Swiss mining conglomerate Glencore, allegedly manipulated the offshore financial system to dodge taxes, a practice that has ignited public and political outrage worldwide.

The bulk of the unpaid taxes – nearly 99.9 percent – is linked to a single, ongoing case involving Glencore, one of the world’s largest mining companies. The Paradise Papers revealed how multinational corporations such as Apple, Nike, Uber, and Glencore used offshore tax havens and intricate financial schemes to reduce their tax liabilities. Specifically, Glencore’s operations in Chile were flagged due to a corporate restructuring in which the company made a $534 million “loan” between its Chilean subsidiary and another division based in Bermuda, a jurisdiction notorious for its lax tax regulations.

Tax experts cited in the CIPER Chile investigation raised alarms, suggesting that this maneuver could have been a strategy to mask profits and avoid paying taxes in Chile. In response to the audit, Glencore has disputed the findings, maintaining that the difference of opinion with Chile’s SII relates to the tax effects of dissolving a foreign subsidiary, and that it is not linked to tax evasion accusations. Nonetheless, the company has taken the case to court, challenging the large sum identified by Chilean authorities.

Chile’s tax agency has opened 216 audits in total, following revelations from various ICIJ investigations. These audits have uncovered potential tax liabilities from 711 individuals and businesses operating across 26 different jurisdictions, further highlighting the far-reaching impact of the ICIJ’s reporting. The ongoing probes into offshore financial practices, such as those exposed by the Panama Papers and Bahamas Leaks, have prompted governments around the world to take a closer look at the ways wealthy individuals and corporations shift their wealth to avoid paying taxes.

The Paradise Papers, in particular, have become emblematic of the global tax avoidance crisis. Based on a leak of 13.4 million documents obtained by the German newspaper Süddeutsche Zeitung, this investigation was a collaborative effort between the ICIJ and 95 media organizations, including CIPER Chile. The leaked documents, primarily from offshore law firms and company registries in secretive jurisdictions, laid bare how the world’s wealthiest corporations and individuals use tax havens to shelter trillions of dollars in assets, depriving countries of critical tax revenue.

The potential recovery of $1.5 billion in unpaid taxes could have a transformative effect on Chile’s public services, particularly in the healthcare sector. Journalists from CIPER and LaBot estimated that, if collected, this sum could hypothetically fund the construction of up to five large hospitals, with a capacity of over 3,000 beds, 110 operating rooms, 30 delivery rooms, and five emergency care centers equipped with heliports. Such an investment would significantly bolster Chile’s healthcare infrastructure, a pressing need highlighted by the COVID-19 pandemic.

CIPER journalist Francisca Skoknic underscored the importance of this revelation in showing the tangible benefits of investigative journalism. “It was a number so impressively large that we thought it was an error,” she said after receiving the SII data. However, a subsequent freedom of information request confirmed the accuracy of the figure. Skoknic added that investigative journalism often exposes problems that are difficult to quantify, but this case demonstrates the direct financial and societal value of holding powerful entities accountable.

Chile’s efforts to recoup unpaid taxes are part of a broader global push to clamp down on tax evasion and aggressive tax avoidance. The ICIJ’s investigations have already prompted governments around the world to collect billions in lost revenue. According to ICIJ data, governments have recovered $1.36 billion globally as of 2021, solely from revelations tied to the Panama Papers. Chile’s expected recovery from the Paradise Papers case would push this figure even higher.

However, as with many tax evasion cases, the final amount Chile collects is subject to the outcome of legal proceedings. Glencore’s court challenge, for instance, could reduce the final amount. Nonetheless, the audits sparked by ICIJ’s investigations represent a significant shift in how countries, especially in the Global South, are tackling the issue of tax avoidance by multinational corporations.

Chile’s bid to recover over $1.5 billion in unpaid taxes from entities linked to ICIJ investigations is not only a test of its legal system but also a broader challenge to the global financial status quo. The use of offshore tax havens by multinational corporations has long deprived nations of essential resources needed to fund public goods and services.

As the world grapples with the economic fallout of the pandemic and rising inequality, governments are increasingly taking aim at the wealthy elite and corporations that exploit legal loopholes to avoid paying their fair share. Chile’s pursuit of Glencore and other tax-dodging entities underscores the growing demand for transparency, accountability, and economic justice.

For Chileans, the possibility of recovering billions of dollars offers a glimmer of hope in addressing pressing social needs, and it serves as a reminder of the critical role that investigative journalism plays in revealing abuses of power and wealth that harm the public interest.

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