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Research published this past Sunday says that rich individuals have at least $32 trillion of financial assets hidden in tax havens offshore. This amount of money accounts for $280 billion in lost revenue from income tax. The sum of money estimated by the study ranges from $21 to $32 trillion and is hidden in offshore accounts across the world. The estimate does not include items such as yachts, gold, real estate, and racehorses, which are non-financial assets.
The research was performed by former chief economist of McKinsey & Co., James Henry. Henry conducted the research for Tax Justice Network, which is a pressure group that campaigns against people having money in tax havens. Data was compiled by Henry from the United Nations, the International Monetary Fund, the World Bank and from central banks.
The research released also discusses the impact caused on balance sheets for 139 developing countries that have money in tax havens by private elitists. This in turn makes sure that the money is out of the reach of authorities that can tax it. The report said that from the 1970s, the wealthiest citizens of the 139 developing countries accumulated anywhere from $7.3 to $9.3 trillion of ‘unrecorded offshore wealthy’ by the year 2010. In a statement, Henry said that wealth held privately in offshore tax havens causes “a huge black hole in the world economy.”
