Tax havens: Super-rich 'hiding' at least $21tn

[Rebecca Jo 1,962]

http://www.bbc.co.uk/news/business-18944097

A global super-rich elite had at least $21 trillion (£13tn) hidden in secret tax havens by the end of 2010, according to a major study.

The figure is equivalent to the size of the US and Japanese economies combined.

The Price of Offshore Revisited was written by James Henry, a former chief economist at the consultancy McKinsey, and commissioned by the Tax Justice Network.

He said $21tn is a conservative figure and the true scale could be $32tn.

A trillion is 1,000 billion.

Mr Henry used data from the Bank of International Settlements, International Monetary Fund, World Bank, and national governments.

[I AM NOT THAT GUY 5,715]

Good. Governments need to be put on a tight leash.

[X Factor 1,112]

The rich are going to always find a way to protect their money and you can't fault them for doing so.

[mawilson 2,133]

Allow them to bring the money back home tax-free and watch the economy fly like you've never seen before.

[james&olya 1,121]

The rich are going to always find a way to protect their money and you can't fault them for doing so.

But you absolutely can and should fault them for not paying their taxes! The taxes you owe, like any other bill, is not YOUR money, it rightfully belongs to the entity that rendered you whatever goods or services you lawfully received! I hope that these rich tax cheats finally see some justice. Why is it that Mitt won't release more of his tax returns. Is it because he took advantage of that amnesty for the funds hidden in swiss bank accounts that were revealed by that whisle-blower?

[웃 910]

http://www.bbc.co.uk...siness-18944097

A global super-rich elite had at least $21 trillion (£13tn) hidden in secret tax havens by the end of 2010, according to a major study.

He said $21tn is a conservative figure and the true scale could be $32tn.

Bloomberg

Wealthy May Hide As Much As $32 Trillion Offshore, Report Says

Wealthy individuals may have been hiding as much as $32 trillion offshore at the end of 2010, according to Tax Justice Network, a U.K.-based organization that campaigns for transparency in the financial system.

The estimate is almost three times the organization’s last estimate of $11.5 trillion in 2005. Fewer than 100,000 people own $9.8 trillion of offshore assets, according to the research, carried out by former McKinsey & Co. economist James Henry.

There is a “huge black hole in the world economy” of untaxed private wealth, Henry said in a statement. “The lost tax revenue implied by our estimates is huge.”

The amount held offshore means that 139 countries with external debts of $4.1 trillion at the end of 2010 would be creditors to the world, if as much as $9.3 trillion of cross- border holdings of their wealthiest citizens were taken into account, according to the research.

The Tax Justice Network study drew on data from the World Bank, International Monetary Fund, central banks, the United Nations and company reports.

http://www.bloomberg.com/news/2012-07-22/wealthy-may-hide-as-much-as-32-trillion-offshore-report-says.html

[Usui Takumi 1,562]

My understanding is that this is a cyclical thing similar to illegal immigration. They offshore, wait for the next tax amnesty, and then bring it back in at a lower rate. Governments look at those funds and salivate at the notion of getting even minimal taxes off the funds.

Just say no to amnesty, be it an immigrant or a bank account.

[X Factor 1,112]

But you absolutely can and should fault them for not paying their taxes! The taxes you owe, like any other bill, is not YOUR money, it rightfully belongs to the entity that rendered you whatever goods or services you lawfully received! I hope that these rich tax cheats finally see some justice. Why is it that Mitt won't release more of his tax returns. Is it because he took advantage of that amnesty for the funds hidden in swiss bank accounts that were revealed by that whisle-blower?

I am not talking about not paying taxes. Everyone should pay their legal share. But by strategic planning and knowing the tax laws can have an impact at to how much tax one pays. For example a person who keeps up with paperwork can itemize deduction and pay less taxes than someone who takes the standard deduction. He can plan to buy energy saving appliances or windows and get tax credits. He can hire certain segments of the population and get tax credits if he is an employer. It's the American way to only pay what you are legally entitled to pay. The rich find many of the loop holes to legally pay as less tax as possible and you can't fault them for that. If they are deliberately doing illegal things not to pay taxes then they should be held accountable.

[mawilson 2,133]

My understanding is that this is a cyclical thing similar to illegal immigration. They offshore, wait for the next tax amnesty, and then bring it back in at a lower rate. Governments look at those funds and salivate at the notion of getting even minimal taxes off the funds.

Just say no to amnesty, be it an immigrant or a bank account.

The difference is, illegal immigrants have a net-negative effect on the economy.

Money always has a positive effect.

[Usui Takumi 1,562]

The difference is, illegal immigrants have a net-negative effect on the economy.

Money always has a positive effect.

Neither statement is a solid fact.

There can be instances were immigrants are cost neutral or even positive. Likewise, you can flood an economy with money, overheat it and ultimately crash it.

[mawilson 2,133]

Neither statement is a solid fact.

There can be instances were immigrants are cost neutral or even positive. Likewise, you can flood an economy with money, overheat it and ultimately crash it.

The economy could use some heat right now. It's a long way from overheating.

[james&olya 1,121]

I am not talking about not paying taxes. Everyone should pay their legal share. But by strategic planning and knowing the tax laws can have an impact at to how much tax one pays. For example a person who keeps up with paperwork can itemize deduction and pay less taxes than someone who takes the standard deduction. He can plan to buy energy saving appliances or windows and get tax credits. He can hire certain segments of the population and get tax credits if he is an employer. It's the American way to only pay what you are legally entitled to pay. The rich find many of the loop holes to legally pay as less tax as possible and you can't fault them for that. If they are deliberately doing illegal things not to pay taxes then they should be held accountable.

Hiding your funds in swiss or 'off-shore' tax havens to shirk taxes is not usually legal.

[X Factor 1,112]

Hiding your funds in swiss or 'off-shore' tax havens to shirk taxes is not usually legal.

Exactly - usually not legal. But there are some loopholes and the rich have accountants and advisors that specialize in finding legal loopholes so that they can put their money in tax havens while not technically calling it "tax havens".

Edited July 23, 2012 by kennard

[mawilson 2,133]

Hiding your funds in swiss or 'off-shore' tax havens to shirk taxes is not usually legal.

There are perfectly legal ways to do that. You just can't touch the money.

[james&olya 1,121]

There are perfectly legal ways to do that. You just can't touch the money.

It will be interesting to see whether we ever get a full and honest accounting of Mitt's millions and why they have been where he put them!