Wednesday, April 10, 2013

Tax Haven under scrutiny

Estimates by the non-governmental organization Tax Justice Network put the figure at about €16 to 25 trillion ($21 to 33 trillion). In this manner, the native countries of these individuals and companies are deprived of hundreds of millions in taxes, sometimes legally but often illegally.

The billions deposited in offshore accounts come from the United States and the rest of North America, and recently from emerging economies and the Third World, as well. Many Russian oligarchs manage their companies through offshore firms, while wealthy Southern Europeans use offshore accounts to protect their assets from a collapse of the euro -- and from the taxman. Spiegel
Most of these Tax Havens are small countries and they can easily be 'persuaded' to release the names of their clients if the US and EU are willing do it. After being left alone for decades, cash-strapped governments have more incentive to pursue tax dodgers now than ever.

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