Pope Benedict XVI is working on a doctrinal pronouncement that will condemn tax evasion as "socially unjust".

Pope Benedict XVI is working on a doctrinal pronouncement that will condemn tax evasion as "socially unjust". In his second encyclical, Vatican sources have reported that the pontiff will denounce the use of tax havens and offshore bank accounts by wealthy individuals, since this reduces tax revenues for the benefit of society as a whole. The encyclical, drafted during Pope Benedict’s recent holiday in northern Italy, will focus on the world’s social and economic problems in an era of globalisation. He intends to argue for a world trade and economic system that is regulated in such a way as to avoid further injustice and discrimination. Italian prime minister Romano Prodi recently urged church leaders to speak out on tax evasion. Last week he began a concerted crackdown on tax evaders, targeting individuals with second homes and other signs of "conspicuous wealth". If the black economy is included, unpaid taxes amount to 27 per cent of Italy's gross domestic product.