The Tax Justice Network, an international pressure group campaigning for the elimination of cross-border tax evasion, estimates wealth held ...

The Tax Justice Network, an international pressure group campaigning for the elimination of cross-border tax evasion, estimates wealth held in tax havens is costing governments around the world up to $255 billion annually in lost tax revenues. The group says that the overall cost of tax havens to the global economy is likely to be considerably higher that $255 billion. The network argues the figure does not include tax losses caused by corporate profits hidden in tax havens and the downward pressure on tax revenues caused by countries engaging in tax competition to attract or retain investment. The lobby group says the figure is based solely on the offshore holdings of people falling into the high net-worth individual category. “This category only includes people with liquid financial assets exceeding US $1 million. The assets of smaller net-worth individuals are not included in the wealth estimate, though it is probable that the sums held offshore by people falling into this category are considerable,” said a statement from the TJN.