Trillions held in UK tax havens

PEOPLE using tax havens have deprived governments worldwide of £100 billion of revenue, enough to end extreme poverty twice over, according to new figures published by Oxfam.

The total amount of lost tax revenue is far higher than £100bn, as the figure only includes tax dodged by individuals, not companies.

A high proportion of tax evasion takes place in British offshore tax havens, with more than one-third of the £12 trillion held in tax havens around the globe believed to be held in British Overseas Territories and Crown Dependencies, according to the charity’s estimates.

Emma Seery, Oxfam’s head of development finance and public services, said: “These figures put the UK at the centre of a global tax system that is a colossal betrayal of people here and in the poorest countries who are struggling to get by, and put the Government on the side of the privileged few. If they want to get on the right side of this debate, now is the time to take action.

“Britain’s credibility is on the line; talking tough on tax, while continuing to usher one-third of the world’s wealth into UK tax havens, risks making a mockery of David Cameron’s leadership at the G8 Summit in June.”

The figures were released as the Prime Minister attends a European Council meeting in Brussels where European heads of state are discussing the global tax system and tax evasion.