Another report has unveiled more tax evaders. Bigger than the Panama Papers from several yeas ago, the recently released Pandora Papers revealed how dozens of world leaders, and many more wealthy individuals are hiding wealth in tax havens. Sometimes the tactics are legal, sometimes not. In many cases the reality of hidden wealth contradicts public statements about closing such loopholes and discouraging such behavior.
“…the Tax Justice Network reported last year that governments are losing $245bn (£180bn) annually to corporate tax abuse, and $182bn (£134bn) to tax evasion by individuals.“
That adds up to almost a half a trillion dollars of lost tax revenue every year. Everyone else subsidizes such activities by cutting back or delaying necessary services. Again, these are public figures, not limited to criminals and their organizations.
While governments enabled those loopholes, they are now talking about closing them with disclosure (as usual, and possibly to the usual effect), and;
“This summer 130 countries signed up to a new global minimum corporate tax rate of 15%, along with measures to stop multinational corporations shifting profits around.” – The Guardian
It is ironic that implementing such a tax, closing loopholes, and enforcing such laws is left to the very people who are benefiting from the tax havens. Another surprise is that taxes are so low in the US that even without using the tax havens of South Dakota or Delaware US billionaires may not need to use such tax havens – effectively making the entire country a place avoid supporting the system that sustains and enables such wealth.