According to report published on July 21by the UK newspaperGuardian, at least £13 trillion (USD 20 trillion) has leaked out of scores of countries into states including Switzerland and the Cayman Islands with the help of private banks and the exploitation of tax loopholes.
The report which is based on research commissioned by the campaign group Tax Justice Network, also found that two Swiss private banks, UBS and Credit Suisse along with the US investment bank Goldman Sachs, managed more than £4 trillion in 2010, which shows a three-fold increase compared to five years earlier.
The amount is as much as the total of US and Japanese GDPs put together.
According to the report, in oil-rich states “with an internationally mobile elite” a large amount of money ends up in offshore bank accounts such as in Saudi Arabia, with almost USD 200 billion flooding “out since the mid-1970s.”
The amount of this rich minority’s cash which leaves their motherlands and piles up in bank accounts out of reach of tax authorities adds to inequality in these countries and widens the gap between rich and poor.
Calculations show that £6 trillion of these assets is owned by only 90,000 people, or 0.001 percent of the world’s population.
The report further added that the governments must close down the tax loopholes instead of tightening austerity measures and exerting intense pressure on the majority of people.
However, the report failed to mention that this small minority includes influential politicians from across the globe.