According to a study by a global advocacy group, tax abuse by international companies and avoidance by HNWIs (high net worth individuals) is costing countries USD $427 billion each financial year in lost revenue.
The Tax Justice Network said its report revealed during last weekend’s G20 group meeting of the developed and emerging market countries for the first time the figures and extent of the resources being lost, and called on the members to increase their regulations as a matter of urgency.
The report says the jurisdictions most responsible for tax losses were to British overseas territory, the Cayman Islands, were 5 countries responsible for 16.5% or more than USD $70 billion of tax losses globally, as namely the following:
- The UK (10% of losses estimated to be $42 billion).
- The Netherlands (8.5% of losses estimated to be $36 billion).
- Luxembourg (6.5% of losses estimated to be $27 billion).
- The US (5.5% of losses estimated to be $23 billion).