The wealthiest people in the world have hidden a staggering 21 trillion dollars or more in offshore accounts, according to a report. The report, called The Price of Offshore Revisted, revealed that between 21 and 32 trillion dollars could be hidden in tax havens like Switzerland and the Cayman Islands.
The report revealed that some ten trillion dollars that has been stashed in off-shore accounts is owned by only 92,000 people, or 0.001 percent of the world's population. "These estimates reveal a staggering failure: inequality is much, much worse than official statistics show," New York Daily News quoted John Christensen of the Tax Justice Network, as saying.
Private banks and investment firms have facilitated these wealthy individuals and corporations to take advantage of loopholes and gaps in cross-border tax rules, the report said.
The economic transparency group Tax Justice Network revealed that the amount is larger than the entire United State's economy, or enough money to entirely solve the European debt crisis.
According to the Tax Justice Network report, almost every country has suffered from the billions of dollars in tax revenue, adding that sub-Saharan Africa and oil producing states like Saudi Arabia have especially faced the brunt. The report was compiled using thousands of pieces data and sources, including information from the IMF, the Tax Justice Network said.
Democrats have accused Republican candidate Mitt Romney of stashing some of his wealth in offshore banks to avoid taxes. The Romney campaign has, however, dismissed the allegations as an "unfounded character assault."
