posted on Jan, 30 2013 @ 10:41 AM
This article was written a little while back. But I found it so interesting. Really fascinating to think what the rich get up to. So here goes :
£13tn hoard hidden from taxman by global elite
• Study estimates staggering size of offshore economy
• Private banks help wealthiest to move cash into havens
A global super-rich elite has exploited gaps in cross-border tax rules to hide an extraordinary £13 trillion ($21tn) of wealth offshore – as much
as the American and Japanese GDPs put together – according to research commissioned by the campaign group Tax Justice Network.
James Henry, former chief economist at consultancy McKinsey and an expert on tax havens, has compiled the most detailed estimates yet of the size of
the offshore economy in a new report, The Price of Offshore Revisited, released exclusively to the Observer.
He shows that at least £13tn – perhaps up to £20tn – has leaked out of scores of countries into secretive jurisdictions such as Switzerland and
the Cayman Islands with the help of private banks, which vie to attract the assets of so-called high net-worth individuals. Their wealth is, as Henry
puts it, "protected by a highly paid, industrious bevy of professional enablers in the private banking, legal, accounting and investment industries
taking advantage of the increasingly borderless, frictionless global economy". According to Henry's research, the top 10 private banks, which
include UBS and Credit Suisse in Switzerland, as well as the US investment bank Goldman Sachs, managed more than £4tn in 2010, a sharp rise from
£1.5tn five years earlier.
A spokeswoman for UK Uncut said: "People like Philip Green use public services – they need the streets to be cleaned, people need public transport
to get to their shops – but they don't want to pay for it."