At least US$18.5 trillion is hidden by wealthy individuals in tax havens worldwide, representing a loss of more than US$156 billion in tax revenue, according to new figures published by international agency Oxfam.
Oxfam has found that two-thirds of this global offshore wealth – more than US$12 trillion – is hidden in EU related tax havens, such as Luxembourg, Andorra or Malta.
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These havens are facilitating the loss of over US$100 billion in tax revenues worldwide. A third of offshore wealth is sitting in UK-linked tax havens where it is undeclared and untaxed, the report says.
The charity said that even on conservative assumptions, the US$18.5tn would yield US$156 billion to tax authorities around the world, whilst the cost of providing every person on earth with an income of US$1.25 a day would be US$66 billion.
Oxfam’s Kevin Roussel said: "It’s scandalous that so much money is allowed to sit untaxed, letting off the hook those individuals who can most afford to pay for public goods and services. Many governments claim to have no alternative but to cut public spending and development aid, but we’ve found there’s enough potential tax to be had on hidden "private" money to end extreme world poverty twice over."
The agency is calling for a blacklist of tax havens, and has urged EU states to forge more imposing sanctions against tax havens and businesses that take advantage of them.
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