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Social Justice > Published by Shamik Das, November 25th 2011 at 12:27 am

$3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion

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New research today from the Tax Justice Network reveals tax evasion costs 145 countries, representing over 98 per cent of global GDP, more than US$3.1 trillion a year. The cost to Britain is $69.9 billion – 56% of the nation’s healthcare spend.

The report, The Cost of Tax Abuse: A briefing paper on the cost of tax evasion worldwide (pdf), shows Europe as a whole loses 87% of its total healthcare budget to tax evasion, with Africa losing nearly all its budget (98%) and South America a staggering 139%. One hundred and nineteen of the 145 countries surveyed lose more than half their healthcare budget to tax evasion.

As the table below shows, the UK is in the top ten countries losing to tax evasion:

Top-ten-countries-losing-to-tax-evasion-in-absolute-terms
Highlighting the consequences of evasion, the report adds:

More than $1 in every $6 earned in the world is not subject to tax because those earning it have deliberately ensured that their income is hidden from the world’s tax authorities – in Greece and Italy, where economic collapse currently looks possible, more than €1 in €4 is hidden in the shadow economy.

John Christensen, director of the Tax Justice Network, says:

“Tackling tax havens is a crucial part of ending the culture of tax evasion. Tax evasion is crippling public finances across the world but governments aren’t doing nearly enough to end this cancer.

“Tax havens are engaged in economic warfare against the tax regimes of sovereign countries, and these estimates reveal the human cost in terms of the impact on health services.”

With Tax Research UK’s Richard Murphy adding:

“The findings add a new policy agenda to public debate on the world’s financial crisis. For example, Italy loses €183 billion to tax evasion a year. Its current debt of €1.9 trillion represents just over 10 years tax of tax evasion on this basis.

“If only more had been done to tackle rampant tax evasion, Europe would not be facing a crisis today…

“Tax havens can be beaten using three simple measures:

• First we demand that all tax havens put details of the ownership of all companies and trusts located there, and the accounts of those organisations, on public record;

• Second we demand that all multinational companies publish accounts that reveal their use of tax havens;

• Last, we believe that all tax havens should be required to exchange information each year on the income recorded within them belonging to the citizens of other countries with the places where those people really live.

“These measures would shatter the secrecy of tax havens for good, and that means those committing tax crimes will no longer have places to hide the proceeds of their crimes. Nothing could make a bigger contribution than this to solving the world’s financial crisis right now.”

The findings come as the Tax Justice Network launches Tackle Tax Havens, a new campaign highlighting the critical role these secretive states play in corrupting the global economy.

The research demonstrates the importance of tackling tax evasion, tax avoidance and the tax havens that help the immoral super-rich from contributing to the services that directly benefit them – from the health and education systems their workers rely on, to the roads that transport their goods, to the courts that enforce their contracts, to the police who protect their property.

Watch the campaign video:

As the report concludes:

Tax evasion is always a crime. Tax evasion on this scale is not just a personal crime though: it then becomes both a crime against society and a crime against democracy.

That is because both societies and democracy can fail as economies falter when the demands for government services increase in times of economic crisis but the people willing to make payment for them are too few in numnber.

Tax evasion is at the core of the crisis in the world’s economies as a consequence. It is our suggestion that tackling evasion is one of the necessary conditions for solving that crisis and at the same time providing the healthcare, education, pensions and other services the people of the world need.

See also:

• Taking on the tax havens – Chris Jordan, October 16th 2011

• Exclusive: 98 of the FTSE 100 companies are addicted to tax havens – Asha Tharoor, October 11th 2011

• Profile of Richard Murphy, scourge of the tax avoiders – James Leppard, September 24th 2011

• Lucas launches campaign to end £16bn tax evasion scandal – Shamik Das, March 17th 2011

• The role Britain plays in facilitating global tax evasion – Lydia Prieg, January 31st 2011

  • http://twitter.com/therightarticle/status/139963181291405312 Michael

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion – http://t.co/F5OkkM6s

  • http://twitter.com/leannewood/status/139963616811171840 LeanneWood

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/m_we/status/139964019321745409 Matthew Wilson Eames

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion – http://t.co/F5OkkM6s

  • http://twitter.com/andy__martin/status/139965138114588672 Andrew Martin

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/catrinms/status/139965590134722560 CATRIN M S DAVIES

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/simonzec23/status/139970105965674496 Simon Zec

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/oranj/status/139970405342515200 Nick

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/mcmlxxvi_ad/status/139973639096385536 Jamie

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/xjHbudkA

  • http://twitter.com/benmiddleton39/status/139973642355359744 BenMiddleton

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/napierbones/status/139973986984529921 Napier Bones

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion – http://t.co/F5OkkM6s

  • http://twitter.com/warrerj/status/139980976162996224 Rob Warren

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/tooldtoroknroll/status/139982654941577217 David Irvine

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/fairpensions/status/139991018341810176 FairPensions

    #ff @tackletaxhavens – a brand new campaign on #tax #havens. http://t.co/SnsMVLnr

  • http://twitter.com/nj_davies/status/139996891806052352 Nick Davies

    Report on tax evasion @leftfootfwd puts the couple of billion lost through benefit fraud into perspective http://t.co/70AvSSSR

  • http://twitter.com/suitpossum/status/139997680746233856 Brett Scott

    #ff @tackletaxhavens – a brand new campaign on #tax #havens. http://t.co/SnsMVLnr

  • http://twitter.com/jonathanpsadler/status/139999470720008192 Jonathan Sadler

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion – http://t.co/F5OkkM6s

  • http://twitter.com/murphium/status/139999863495593984 Michael Murphy

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion – http://t.co/F5OkkM6s

  • http://twitter.com/bbflint/status/140000717158092802 BobbyFlint

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion – http://t.co/F5OkkM6s

  • http://twitter.com/labour52rose/status/140002603856703488 Alex Braithwaite

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/zeSwUna4

  • http://twitter.com/thenashmeister/status/140003085819981824 Darren Nash

    Well done, the uber-rich. Your excellent parasite impressions are beyond compare: http://t.co/wFFl5szn via @leftfootfwd

  • http://www.facebook.com/profile.php?id=706395501 Deirdre Shaw

    Tax avoidance is at least as big a problem as tax evasion. There are many legal ways of minimising the amount one pays in tax, if one knows how or can afford advisers to tell one how. Most of those avoiding tax are, inevitably, major earners, people who earn far more than they can ever spend; look, for instance, at people like Lewis Hamilton, domiciled abroad in order to avoid paying any tax in the UK. At the very least, we should publicly vilify and deride such people and applaud those who resist such manoeuvres.

  • http://twitter.com/psychoticlynx/status/140004674827849728 Kim Blake

    RT for the larks: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas

  • http://twitter.com/mibizc/status/140006369976782849 Dave Trew

    RT for the larks: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas

  • http://twitter.com/loutheye/status/140006878691340288 Ros Jackson

    In case you were short of things to feel angry about this morning: http://t.co/696Q1wKN You're welcome.

  • http://twitter.com/ajit8_/status/140007423367843841 ajit8

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion | Left Foot Forward http://t.co/fPer9NDj

  • http://twitter.com/jackrusselbitch/status/140007439708864513 JackRusselBitch

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion | Left Foot Forward http://t.co/Ha5nAnxN

  • http://twitter.com/_ajit8/status/140007456486064128 ajit8

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion | Left Foot Forward http://t.co/RIg88QfH

  • http://twitter.com/marstrina/status/140008810977837056 MarinaS

    RT for the larks: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas

  • http://twitter.com/kernewek61/status/140009282174332928 Martin Menear

    RT for the larks: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas

  • http://twitter.com/jamesrupa/status/140014749315379201 James Rupa

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/ykL6QcJP

  • http://twitter.com/lorsdors/status/140015584615206912 Lors Dors

    RT for the larks: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas

  • http://twitter.com/june4th/status/140017926945259520 Noxi

    RT @leftfootfwd $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/e2fTPCAg by @ShamikDas

  • http://twitter.com/suey2y/status/140022553891713024 Sue Marsh

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/c0cZIEXr via @ebuzzing

  • http://twitter.com/hellsbells265/status/140022871685726208 Helen Thomas

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/c0cZIEXr via @ebuzzing

  • http://twitter.com/matthewjhammond/status/140026514753327106 Matthew Hammond

    Well done, the uber-rich. Your excellent parasite impressions are beyond compare: http://t.co/wFFl5szn via @leftfootfwd

  • http://twitter.com/Philcovers Christopher Phillips

    So who pays? Need I ask? And our government has the audacity to cut benefits to the poorest and most vulnerable, and to raise the fees to universities……… If governments went after THIS money there would be little need to worry about the smaller, but illegal benefits fraud. OF course real benefits fraud should be stopped as well. BUT there is a better way of dealing with that anyway……..

  • http://twitter.com/dubious1977/status/140028448985972736 David Dubost

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/jTgx1A5f

  • http://twitter.com/christoclifford/status/140031802009067520 christine clifford

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/c0cZIEXr via @ebuzzing

  • http://twitter.com/gazzaw2004/status/140032483377942528 Gary Williams

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/ykL6QcJP

  • http://twitter.com/labouruncut/status/140033874578255872 Labour Uncut

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/z3wBzRQl

  • http://twitter.com/averyps/status/140033985295286272 Phil BC

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/z3wBzRQl

  • http://twitter.com/guid0man/status/140034225628917762 Guy Manchester

    Staggering report outlining the cost of tax evasion globally (Spoiler: It's a motherfucking shitload of a cost): http://t.co/aLza9729

  • http://twitter.com/sndroni/status/140034290032455680 Aileen Quigley

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/z3wBzRQl

  • http://twitter.com/parattino1/status/140035294228512769 Lesley

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/z3wBzRQl

  • http://twitter.com/mattyd128/status/140035680867856384 Matt

    RT for the larks: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas

  • http://twitter.com/outsideleft/status/140036292015702016 OutsideLeft

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/z3wBzRQl

  • http://twitter.com/mattfinished/status/140098590398889984 MattFinnegan

    You asked what's the alternative to public spend cuts? > $3.1 trillion tax evasion globally; £69.9 billion in Britain| http://t.co/M2Rrshmh

  • http://twitter.com/ayiasophia/status/140099277518151680 Sophia

    We're top 10 RT @Spinwatch $3.1 trillion lost to tax evasion globally; cost to UK: £69.9 bn says Tax Justice Network http://t.co/1mvh8jRi

  • http://twitter.com/phemefilms/status/140099829727629313 phemefilms

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/wiqOr80l

  • http://twitter.com/bbri439/status/140099926364405760 brian hocknull

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion says Tax Justice Network http://t.co/25oR0qLu #taxevasion

  • http://twitter.com/rosshaffenden/status/140100977633140738 Ross Haffenden

    $3.1 trillion lost to tax evasion globally cost to Britain £69.9 billion http://t.co/9g36hprH That's a lot of pensions.#allinthistogetherNOT

  • http://twitter.com/steverar/status/140119830887010304 Steve Rudland

    RT @leftfootfwd: Tax Evasion cost to UK: £69.9 billion or 56% of Healthcare spend http://t.co/KUzvoImp > Benefit Fraud cost in UK £900m…

  • http://twitter.com/m_escreet/status/140135789651689472 moira escreet

    RT @leftfootfwd: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion http://t.co/z3wBzRQl

  • http://twitter.com/fa110/status/140169543900336128 Farid

    RT @TheRightArticle: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion – http://t.co/iuRitqwy #ukuncut #occupy #ows

  • http://twitter.com/odysseus62/status/140170627553312768 Andrew Simpson

    RT @TheRightArticle: $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion – http://t.co/iuRitqwy #ukuncut #occupy #ows

  • http://twitter.com/ts200_bot/status/140189815319691265 Tangled Skein 200

    RT @leftfootfwd: Tax Evasion cost to UK: £69.9 billion or 56% of Healthcare spend http://t.co/KUzvoImp > Benefit Fraud cost in UK £900m…

  • http://twitter.com/quirkyyy/status/140368523934441472 Deanna Quirke

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion – http://t.co/F5OkkM6s

  • http://twitter.com/liberte_info/status/140398170982195200 Liberté-info

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion says Tax Justice Network http://t.co/25oR0qLu #taxevasion

  • http://twitter.com/hlcheathrow/status/140415245679210497 Jon Purdom/Paco Saez

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/sarcasticfringe/status/140434914557440000 Sarcastic Fringe

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion: http://t.co/r6A8vI0w by @ShamikDas @TackleTaxHavens

  • http://twitter.com/postpolionews/status/140477196493012992 Chris Salter

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion | Left Foot Forward http://t.co/xwNOfpdo #ppnews

  • http://twitter.com/jintyg51/status/140487128332255232 Janet Graham

    $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion | Left Foot Forward http://t.co/xwNOfpdo #ppnews

  • http://twitter.com/cameronsfollys/status/140776114594385920 cameronsfollys

    Hail the nouveau riche. Old money rocks! Yeah! http://t.co/98OrnN9M

  • http://twitter.com/mashythetictac/status/140881020588269568 AliceOlivia

    @OccupyLSX $3.1 trillion lost to tax evasion globally; cost to Britain:£69.9 billion: http://t.co/sagokVb1 qt: @leftfootfwd @The99Percenters

  • http://twitter.com/the99percenters/status/140883519521042432 99-percenters

    @OccupyLSX $3.1 trillion lost to tax evasion globally; cost to Britain:£69.9 billion: http://t.co/sagokVb1 qt: @leftfootfwd @The99Percenters

  • http://twitter.com/ysknabmi/status/140885679474343936 jar head

    @OccupyLSX $3.1 trillion lost to tax evasion globally; cost to Britain:£69.9 billion: http://t.co/sagokVb1 qt: @leftfootfwd @The99Percenters

  • http://twitter.com/aussieactivist/status/140885866049576961 Mummy

    @OccupyLSX $3.1 trillion lost to tax evasion globally; cost to Britain:£69.9 billion: http://t.co/sagokVb1 qt: @leftfootfwd @The99Percenters

  • http://twitter.com/ada_vodkar/status/140893908258406403 jessica mitchell

    @OccupyLSX $3.1 trillion lost to tax evasion globally; cost to Britain:£69.9 billion: http://t.co/sagokVb1 qt: @leftfootfwd @The99Percenters

  • http://twitter.com/5un7zu/status/140916885649768448 5un7zu

    @OccupyLSX $3.1 trillion lost to tax evasion globally; cost to Britain:£69.9 billion: http://t.co/sagokVb1 qt: @leftfootfwd @The99Percenters

  • http://twitter.com/ellinjaa/status/140920864815333377 julie l

    @OccupyLSX $3.1 trillion lost to tax evasion globally; cost to Britain:£69.9 billion: http://t.co/sagokVb1 qt: @leftfootfwd @The99Percenters

  • http://twitter.com/livable4all/status/140975904045281280 Livable4All

    MT @newsframes @Spinwatch $3.1 trillion lost to tax evasion globally; Tax Justice Network http://t.co/EJNcYXTg #taxevasion

  • http://twitter.com/gutterwall/status/140980777725853696 Richard Schellenberg

    @OccupyLSX $3.1 trillion lost to tax evasion globally; cost to Britain:£69.9 billion: http://t.co/sagokVb1 qt: @leftfootfwd @The99Percenters

  • http://twitter.com/thincouncillor/status/141092006280691712 Thin Councillor

    @OccupyLSX $3.1 trillion lost to tax evasion globally; cost to Britain:£69.9 billion: http://t.co/sagokVb1 qt: @leftfootfwd @The99Percenters

  • http://twitter.com/doodledrawers/status/144083381028798464 Cathy James

    Time to tackle those tax havens: http://t.co/RE1UHS0S – cost to the UK of tax evasion? £69.9bn. Shocking figures #frothers

  • http://twitter.com/creativecrip/status/144083453443452928 TheCreativeCrip

    Q for David Gauke on tax dodging – time to tackle those tax havens: http://t.co/ltCTccK7 – cost to the UK of tax evasion? £69.9bn

  • http://twitter.com/loquaciousminx/status/144103548949499904 L Minx

    Time to tackle those tax havens: http://t.co/RE1UHS0S – cost to the UK of tax evasion? £69.9bn. Shocking figures #frothers

  • http://twitter.com/headlesslamarr/status/144117132387553281 Hedley Lamarr

    Time to tackle those tax havens: http://t.co/RE1UHS0S – cost to the UK of tax evasion? £69.9bn. Shocking figures #frothers

  • http://www.leftfootforward.org/2011/12/richard-murphy-the-courageous-state-book-review/ Richard Murphy’s new book is itself courageous, and ambitious as well | Left Foot Forward

    [...] also: • $3.1 trillion lost to tax evasion globally; cost to Britain: £69.9 billion - Shamik Das, November 25th [...]