KEY FINDINGS –
Overall Size – A significant fraction of global private financial wealth — by our estimates, at least $21 to $32 trillion as of 2010 — has been invested virtually tax-free through the world’s still expanding black hole of more than 80 “offshore” secrecy jurisdictions. We believe this range to be conservative, for reasons discussed below.Remember: this is just financial wealth. A big share of the real estate, yachts,racehorses, gold bricks — and many other things that count as non-financial wealth are also owned via offshore structures where it is impossible to identify the owners.These are outside the scope of this report.
On this scale, this “offshore economy” is large enough to have a major impact on estimates of inequality of wealth and income; on estimates of national income and debt ratios; and – most importantly – to have very significant negative impacts on the domestic tax bases of key “source” countries (that is, countries that have seen net unrecorded private capital outflows over time
A simple question most people would say, but look at the reality of what it really means and it is not such a simple question after all!
The problem is simply what is tax evasion and what is tax avoidance and in this world of global financial contracts, the two blur into one. As and having worked in this country and offshore with my own offshore company and account, l personally do not see any reason to avoid paying tax!
As any accountant l employed had the job of mitigating my tax bill in favour of saving me money and allowing me to pay only what l really should owe! This is legitimate tax avoidance and is completely allowable!
Then we come to avoiding taxation by paying nothing at all and setting up offshore tax structures in such a way as to legitimise all tax avoidance! Whereby you have all the perks of claiming in the country of residency, but also can arrange to domicile yourself,by certain tax avoidance schemes and not paying anything!
So we have two different scenarios and the reason is tax avoidance!
So what of governments and revenue services where do they hold their funds? Well many of them have tax havens and massive property portfolios that are utilised for raising massive amounts of capital for investment purposes and make even more money, to totally avoid tax at all!
Remember anyone can use legitimate means transfer money to another account offshore without paying tax! The problem is getting that money back into the country and not paying tax!
This is where tax avoidance becomes tax evasion in many cases!
- Jeff Salway: Disabled are easier target for Tories than tax avoiders (scotsman.com)
- Wordconomic 4: Tax Avoidance (not Tax Evasion) (selionmanagement.wordpress.com)
- How We Morally Justify Tax Avoidance (acefinance.me)
- $21 trillion hidden offshore (bankrate.com)
- Romney’s Panama Misadventures Open Our Eyes to Offshore Tax Evasion – The Daily Beast (tribuneofthepeople.com)
- Fact File: Tax Avoidance (independent.co.uk)
- Why we should beware of plans to ‘name and shame’ tax avoiders (blogs.telegraph.co.uk)