The UK and British Overseas Territories lead all other offshore tax havens in the world with £64.5bn a year
When it comes to the dubious world of offshore wealth and the respective tax losses subsequently inflicted on other countries, not only does the UK rank second, but three other British Overseas Territories make the top 10.
In fact, when these tax losses to other countries via this offshore wealth are combined, they add up to a staggering £64.5billion, according to new research which has been exclusively shared with AM City today.
By taking advantage of the tax loopholes available through offshore investments, wealthy individuals and organizations around the world are able to streamline the tax they pay.
Although this is a very gray area that often attracts unsavory practices and people, it is not, in itself, illegal.
“It’s fair to say that UK tax laws are quite tough and while there are ways to improve your tax efficiency, those with a substantial level of wealth will often exploit a myriad of loopholes in order to significantly reduce the tax they owe,” Bradley said. Post, CEO of RIFT Tax Refunds, the tax refund company that conducted the research, which focused on the world’s 10 worst tax offenders.
In total, the combined tax lost to offshore wealth across the UK and these three British Overseas Territories amounts to £64.5billion a year, Post said. AM City today.
“One of those loopholes is the process of holding wealth in offshore tax havens, but while the legalities are complex, it’s not technically illegal,” he added.
When it comes to the nation inflicting the greatest tax losses to other nations in the world due to the offshore wealth held there, the notorious tax haven of the Cayman Islands ranks number one, Post continued.
At around £35 billion each year, the tax lost on offshore wealth held in the Cayman Islands is comfortably ahead of any other country in the world.
Despite a crackdown on dirty money held in the UK by Russian nationals, we are the second worst offenders in the world, costing other countries £23billion in tax losses every year due to the offshore wealth held here.
|Top 10 nations based on tax losses inflicted due to offshore wealth|
|Nation – top offenders (based on available data)||Annual tax losses inflictedon other countries(total value in GBP)|
|British Virgin Islands||£3,835,965,293|
|UK and Overseas Territories||£64,494,828,109|
United States, Luxembourg and Ireland
The US ranks third where offshore wealth contributes £15bn in tax losses every year, along with Luxembourg (£12bn), Ireland (£7bn), the United States Netherlands (£6 billion), France (£3.5 billion) and Hong Kong (£3 billion). ) also rank among the worst.
Although Hong Kong has not been under the control of the British Empire since 1997, two other British Overseas Territories feature in the top 10.
The British Virgin Islands are in seventh place, with offshore wealth held there inflicting tax losses to the tune of £3.8bn a year, while Jersey is the tenth worst offender at £2.5bn.