New international research has revealed that the world's wealthiest elite is hiding at least $21 trillion in secret tax shelters, Britain's Observer reports, quoting the study conducted by the Tax Justice Network.
James Henry, who authored the study, is a former senior economist for the McKinsey & Co consulting firm. Henry explains that the sum cited in the research is a very conservative estimate and that the actual amount of tax evasion by the richest people in the world is some $32 trillion.
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The study based its finding on data from international banks, the International Monetary Fund ,the World Bank ,and various governments. It only examined financial wealth that had been deposited in bank accounts, and did not analyze other assets, such as real estate .
The research was published amid growing public anger and frustration over tax fraud and evasion. Last year, many European nations decided to take steps to fight these phenomena and chase down their wealthy citizens who are evading taxes.
Tax Justice Network works to combat global tax evasion, mainly targeting tax havens. Henry explained that billionaires "move their money around the world through a complicated network of accomplices in the private banking field, lawyers, accountants, and employees of the various investment sectors."
"Private wealth held in tax havens is an enormous black hole for the world economy," Henry said. "Los of tax revenue on this money is significant and has a major influence on a lot of countries' financial situation."