Tax on the “private” billions in havens could end extreme world poverty twice over

At least $18.5 trillion is hidden by wealthy individuals in tax havens worldwide, representing a loss of more than $156 billion in tax revenue, according to new figures published today by international agency Oxfam.

The missing money is twice that required for every person in the world to be living above the $1.25-a-day ''extreme poverty'' threshold.

Oxfam's Kevin Roussel said, ''It's scandalous that so much money is allowed to sit untaxed, letting off the hook those individuals who can most afford to pay for public goods and services. Many governments claim to have no alternative but to cut public spending and development aid, but we've found there's enough potential tax to be had on hidden ''private'' money to end extreme world poverty twice over.''

Oxfam has found that two-thirds of this global offshore wealth – more than $12 trillion – is hidden in EU related tax havens, such as Luxembourg, Andorra or Malta. These havens are facilitating the loss of over $100 billion in tax revenues worldwide. A third of offshore wealth is sitting in UK-linked tax havens where it is undeclared and untaxed.

A tax havens crackdown is on the agenda for discussion at the European Union leaders' summit today. Oxfam is calling for a blacklist of tax havens, and an agreement from EU member states to impose sanctions against tax havens and those using them. The EU looks set to fail on this simple task.

Roussel said,  ''The UK and Europe cannot stand by while billions is lost from the global public purse on their watch.''

The $156 billion of lost tax revenue Oxfam estimates is just a fraction of the total tax loss, as it only reflects the amount of tax that individuals are neglecting to pay. It doesn't include the tax dodged by companies and multinational corporations, whose swindling costs Africa alone an estimated $160 billion a year.

(Also see: Individual tax dodgers deprived UK of £100 bn in revenue)