The Tax Justice Network's Estimating the Price of Offshore Revisted report says that over $21 trillion has been squirrelled away in offshore tax-havens by 90,000 super-rich tax-cheats (0.001% of the world's population). The crime was abetted by a network of "enablers" from banks like UBS, Credit Suisse and Goldman Sachs.
Much of the money has been looted from the world's poorest countries, whose populations live in conditions of crushing poverty exacerbated by even more crushing international debt. The report estimates that if those countries' oligarchs and crime bosses were to pay their fair share of taxes that these debts could be settled. For example, Nigeria has lost £196b to tax havens -- while the country's national debt was about $37b as of 2011.
Heather Stewart has more in The Observer:
James Henry, former chief economist at consultancy McKinsey and an expert on tax havens, has compiled the most detailed estimates yet of the size of the offshore economy in a new report, The Price of Offshore Revisited, released exclusively to the Observer.
He shows that at least £13tn – perhaps up to £20tn – has leaked out of scores of countries into secretive jurisdictions such as Switzerland and the Cayman Islands with the help of private banks, which vie to attract the assets of so-called high net-worth individuals. Their wealth is, as Henry puts it, "protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries taking advantage of the increasingly borderless, frictionless global economy". According to Henry's research, the top 10 private banks, which include UBS and Credit Suisse in Switzerland, as well as the US investment bank Goldman Sachs, managed more than £4tn in 2010, a sharp rise from £1.5tn five years earlier.
£13tn: hoard hidden from taxman by global elite
When Wells Fargo fired 5,300 employees for opening 2,000,000 accounts in its customers name (stealing their cash and trashing their credit scores in the process), it wanted us all to know that it had cleaned house, because this was just 5,300 people who, without any help from senior management, all happened to coincidentally engage in […]
Salesforce.com and Google are two of the technology giants who have expressed interest in a possible buyout of the struggling social media firm Twitter, according to various reports. Reuters describes today’s news leak as “the start of what is likely to be a slow-rolling auction of the high-profile but money-losing social media company.” CNBC reported […]
Robert Croucher owns Hatton & Berkeley, a firm that sent “speculative invoices” to people it accused of illegally downloading the Robert Redford movie “The Company You Keep” — letters so egregious that Lord Lucas described the company as “scammers” and the letters as “extortion,” urging Britons to “put them in the bin.”
If you own a dog, you’ve most likely heard of BarkBox – the monthly subscription box for dogs. What started as a simple idea to try out the subscription model on pet owners has since developed a cult following of dog lovers. If you haven’t given it a try yet, this one month free deal is the […]
With the iPhone headphone jack having gone by the wayside, we’re excited about the addition of the FRANKLIN Bluetooth Headphones in our store. These headphones are foldable so they’re easy to carry around, but most importantly, they pack impressive sound. Our biggest struggle with Bluetooth headphones is the worry of them dying at the worst moment. This pair lasts an impressive 8-10 […]
Evan Kimbrell, founder of the digital agency Sprintkick, recently released a series of online courses that feature some of the best advice we’ve come across. These courses are well worth your time, and will save you from making many typical mistakes down the line if you ever want to start your own business.With this Business […]