£64.5 billion annually in offshore tax losses

The UK and British Overseas Territories are responsible for £64.5 billion in offshore tax losses each year, according to new research.

Offshore wealth and tax losses

Research by tax refund experts, RIFT Tax Refundshas uncovered who are the world’s 10 worst offenders when it comes to the shady world of offshore wealth and the corresponding tax losses inflicted on other countries as a result.

Not only is the UK second, but a further three British Overseas Territories make the top 10 and when these offshore wealth tax losses to other nations are added up it comes to a staggering £64.5bn.

By taking advantage of the tax loopholes available through offshore investing, wealthy individuals and organizations around the world can optimize the taxes they pay. While it’s a very gray zone, often attracting some unsavory practices and people, it’s not illegal per se.

Top Ranking Nations

When it comes to the nation that inflicts the largest tax losses on other global nations as a result of the offshore wealth held there, the notorious tax haven of the Cayman Islands ranks at the top. At an estimated £35bn per year, tax losses on offshore wealth in the Cayman Islands are well ahead of any other country in the world.

Despite the crackdown on dirty money held by Russian nationals in the UK, we are the world’s second most common offender, costing other countries £23bn in tax losses each year from offshore wealth held here.

The United States is third where offshore wealth contributes £15bn in tax shortfalls each year, followed by Luxembourg (£12bn), Ireland (£7bn), the Netherlands (£6bn ), France (£3.5bn) and Hong Kong (£3bn). ) are also among the worst.

While Hong Kong has not been under the control of the British Empire since 1997, there are two other British Overseas Territories that make the top 10. The British Virgin Islands is in seventh place, with offshore wealth held there causing £3.8bn in tax losses a year, while Jersey is the 10th worst offender at £2.5bn.

£64.5 billion a year

In total, the combined tax losses on offshore wealth in the UK and these three British Overseas Territories amounts to a whopping £64.5 billion a year.

RIFT Tax Refunds CEO Bradley Post commented:

“It’s fair to say that UK tax laws are fairly strict and while there are ways to improve your tax efficiency, those with significant wealth often take advantage of a variety of loopholes to drastically reduce the taxes they owe.

One of those loopholes is the process of holding assets in offshore tax havens, but while the legalities are complex, it’s not technically illegal.” £64.5 billion annually in offshore tax losses

Fry Electronics Team

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