Being rich is one thing, super rich another. But it is what those super-rich do with their untold wealth which ought to be of concern to governments. One thing is almost certain. The payment of taxes is being avoided.
A new report by the Tax Justice Network released Sunday reveals that between $21 trillion and $31 trillion is currently tucked away in global tax havens by the global super-rich--an amount that far exceeds previous estimates. Through exploiting gaps in global tax rules, the global financial elite are managing to hide "as much as the American and Japanese GDPs put together" from taxation, leaving the world's poor to carry the burden of global debt through harsh austerity measures.
$32 trillion of hidden financial assets in offshore tax havens represents up to to $280 billion in lost income tax revenues.
The report pools data from the World Bank, International Monetary Fund, United Nations and global central banks.
In the report, The Price of Offshore Revisited, the Tax Justice Network details the ways in which the trillions of dollars are essentially smuggled out of countries into tax free havens such as Switzerland and the Cayman Islands through private banks.
According to the calculations, £6.3tn of assets is owned by only 92,000 people--0.001% of the world's population.