Latviski English По-русски
Tuesday 25.09.2018 | Name days: Rauls, Rodrigo

Research: the richest of the rich are hiding no less than 21 trillion dollars in offshores

(No Ratings Yet)

No less than 21 trillion dollars were hidden on bank accounts of the super-rich global elite in different offshore areas in the end of 2010, as it is said in the research that was carried out in accordance with the order of the Tax Justice Network, which specializes in combating tax avoidance.

The number, equal to the total GDP of USA and Japan, was concluded in the report of the former Chief Economist of McKinsey consulting firm James Henry.

According to him, this figure is but a conservative evaluation. He allows for the possibility that the real amount of the hidden “tax-free” funds could reach 32 trillion dollars.

Henry only took into account the funds that are being kept on bank and investment accounts, but not other assets, such as real-estate or yachts. He used the data of the Bank for International Settlements in Basel, the International Monetary Fund, World Bank and national governments.

Some experts doubt Henry’s conclusions, saying that his assessments are overrated, BBC reports.

Henry notes that «a hard-working hive of professional assistants in the spheres of private banking, judicial, accounting and investment service» help the richest of the rich to transfer money across the globe.

«Tax revenues that are being «unaccounted for» are enormous. There is enough money to sufficiently stabilize the financial state of many countries,»- says the author of the report.

«On the other hand, this research – is good news. The world just found an enormous amount of funds that can be used to solve the more important problems,»- Henry adds.

What is most interesting is the fact that the richest of the rich – are mostly citizens of poor, developing countries. They also actively use offshores, thereby causing significant damage to the budgets of their home countries.

According to Henry, citizens of 139 developing countries transferred 9.3 trillion dollars to offshore areas since the 70s and up to 2010.

Tax Specialist and Advisor to the British Government by John Whiting called to be careful with these estimates. «I cannot refute these figures, but they seem extremely high. If it is claimed that these amounts are being actively hidden and no one questions their existence, them it seems odd, not in the slightest because another question arises – just what are the tax institutions doing? In reality though, tax services from USA, England and Germany are doing quite a lot,»- says the British expert.

According to Henry, by the end of 2010, 50 leading banks were managing assets in the interest of their privileged private clients far beyond the borders of the countries in which they pay taxes, assets that were worth a total of 12.1 trillion dollars.

The following banks are mentioned in the report as the largest banks within the private banking service sector: UBS, Credit Suisse and Goldman Sachs.

Less than 100 thousand people in the world own 9.8 trillion dollars in funds that are being kept in offshores, says the researcher.

The problem of tax avoidance became especially sharp in many developed countries that are going through more or less serious fiscal instability.

Governments of some countries, like Germany, even decided to introduce rewards for information on possible tax avoiders, even if the information is stolen from banks.


Leave a reply

PHOTO: Pope Francis visits Riga Cathedral and meets seniors at St Jacob’s Cathedral

Pope Francis visited both Riga Castle and Riga Cathedral, where a service was held under his supervision. There he met with different Latvian officials. After that, the pope met with senior citizens at St Jacob’s cathedral.

Pope Francis arrives in Latvia for an official visit

Pope Francis arrived in Latvia on Monday, 24 September. He was greeted at the airport by President Raimonds Vējonis, Archbishop Zbigņevs Stankevičs and other public figures.

Week in Lithuania. President proposes amendments to restrict bailiffs' remuneration

Lithuanian President Dalia Grybauskaitė is putting forward amendments aimed at restricting bailiffs' financial remuneration to up to 15 per cent of the amount recovered.

BNN summary of the week: pre-election heat, rule of law in Latvia, Baltics prepare for Pope’s visit

BNN offers a summary of this week’s topical news in a variety of categories: Elections; Change; Stagnation; Fight; Visit; Investigation.

Court reschedules viewing of criminal case due to Non-citizens Congress leader’s poor health

Riga City Vidzeme Suburb Court announced today that the viewing of the criminal case in which leader of Non-citizens Congress Aleksandrs Gapoņenko is accused of inciting national hate will be postponed to a later date.

Producer prices in industry up 1.0% in Latvia in August

Compared to July, level of producer prices in the Latvian industry rose by 1.0 % in August 2018. Level of prices of products sold on the domestic market grew by 1.9 %, but of exported products – went up by 0.1 %.

Bishop: priest suspected of sexual abuse to be operated on in hospital

Pāvels Zeiļa, who is a priest of Rezekne Aglona diocese and the suspect in the criminal case regarding sexual violence and human trafficking, will undergo a complicated surgery on Friday, 21 September, as reported by Bishop Jānis Bulis.

Study: residents withdraw money from ATMs less often but in larger amounts

Every now and then discussions about dropping cash money altogether become active in society, AS PrivatBank representatives say.

HND Grupa design company, involved in Zolitude tragery, declared insolvent

Building engineer Ivars Sergets company HND Grupa, which was involved in the case revolving around the Maxima supermarket that collapsed in Zolitude, killing 54, not five years ago, has been declared insolvent, as reported by Latvijas Avīze.

Deputy Chief of State Fire and Rescue Service suspected of misappropriation

Latvia’s Interior Affairs Ministry’s Internal Security Bureau has detained deputy chief of State Fire and Rescue Service Ints Sēlis and one other official – a senior inspector, as reported by Panorāma programme of LTV.

Washington sanctions China for buying Russian military equipment

U.S. government has introduces sanctions against the Chinese army over a purchase of fighter jets and missile systems from Russia, despite a U.S. sanctions law targeting Moscow for attempts to sway in the 2016 U.S. election.

Autumn expected to begin soon in Latvia

Friday, 21 September, is expected to be warm in Latvia. Sun and considerable amount of clouds are expected, but not precipitation. Wind will draw in from the south, reaching a speed of 15-17 m/sec in western and central regions, as reported by Latvia’s Environment, Geology and Meteorology Centre.

Brexit: a finish line with no end in sight

Less than 200 days are left before Britain officially leaves the European Union. The state of the agreement between Britain and EU only serves to create more chaos, from which neither Britain nor EU, or even Latvia will benefit.

EU underlines to London: No-deal Brexit also option

European Union's top officials and member state leaders planned to push for a Brexit deal in October, while urging London to give ground on the issues trade and the Irish border by November, to avoid a no-deal Brexit.

Lithuanian PM, a presumable presidential hopeful, set to curb grocery price growth

Having chastised food retailers on many occasions for high grocery prices, Saulius Skvernelis, the Lithuanian Prime Minister, stepped forward in the bid to harness local supermarkets. The presumed presidential candidate of the ruling Farmers and Greens (LVŽS) has summoned this week executives of major retail food chains, scolded them and reaffirmed his pledge to rein in the edging up prices.

Industrial prices in Estonia – up by 3.4% on year

The industrial price index in Estonia has risen from August 2017 to August this year by 3.4%, official statistics show.

Latvian parliament approves transition to competence-based approach in education content

On Thursday, 20 September, Latvia’s Saeima approved in the final reading amendments to the Education Law, necessary for the gradual introduction of competence-based approach in education materials.

Latvian Saeima wants to disallow shareholders to work in company management board

On Thursday, 20 September, Saeima approved in the first reading amendments to the Credit Institutions Law that provide for multiple measures to enhance Latvia’s finance system and its long-term stability, as reported by the parliament’s press-service.

Aglone Council prohibits residents from organizing protests during Pope Francis’ visit

A protest against the Catholic Church’s ban on abortions and expression of shock in relation to the recent sex scandals involving Catholic priests was planned to take place in Aglone during Pope Francis’ visit, but the city council decided to disallow them.

Latvian parliament conceptual supports pension bonus indexation

On Thursday, 20 September, Saeima supported in the first reading several initiatives for a more rapid pension climb for several groups of pensioners, as reported by Saeima press-service.

Majority Saeima deputies support open president vote; UGF members fail to decide unanimously

On Thursday, 20 September, amendments to the Constitution regarding open election of the state president were approved in the second reading.

Four Estonian parties have strong support, enough to enter Riigikogu

Four Estonian parties are believed to currently have enough support to enter the Estonian parliament, a broad opinion poll showed, as leading parties compete for voter backing.

Vitol Group concerned over state of rule of law in Latvia; turns to state officials

One of the largest energy resource traders in the world – Vitol Group – has sent a letter to Latvia’s highest ranking officials, expressing deep concern over the rule of law and application of legislative acts in the litigation between LatRosTrans and Polocktransneft Druzba over the EUR 66 million worth technological oil.

As Pope heads to Baltics, more attention to Catholic sex abuse

The time, when Roman Catholic Pope Francis is set to visit the Baltics, greatly differs from the visit by Saint John Paul II in 1993. There is public resentment over the countries spending several million euros to host the trip of the pontiff and the Catholic sex abuse scandals are topic of discussion.

Officials asked to take responsibility for misuse of state resources

If misuse of state resources takes place, officials have to take responsibility and pay for the damages caused to the state, says Public Expenditure and Audit Committee chairman Andris Bērziņš.

Newest comments