DEVELOPING countries are missing out on up to $124bn (£90bn) a year from offshore assets held in tax havens, according to a report issued by Oxfam today.
At least $6.2 trillion of developing country wealth is being held offshore by individuals – with a further $200-$300bn being moved into tax havens each year – depriving poor nations of$64-$124bn in tax revenues each year, said the charity.
The Oxfam report, based on analysis by former McKinsey chief economist James Henry, is published on the eve of tomorrow’s G20 finance ministers’ summit, in Sussex, at which tighter regulation of tax havens will be high on the agenda.
Oxfam called for reform of tax havens, saying that the scale of their impact on developing nations could outweigh the $10bn they receive each year in overseas aid.
Kirsty Hughes, Oxfam head of policy and advocacy, said: “Developing countries are losing billions of pounds every year that would provide a vital boost to their economies and could be spent on reducing poverty.
“The current financial crisis shows our leaders can no longer afford to stand idly by whilst tax havens take billions of pounds from the pockets of taxpayers in rich and poor countries alike.
Oxfam is one of a group of dozens of charities, trade unions and community organisations coming together under the Put People First banner for a march on March 28 ahead of the G20 world leaders’ summit in London on April 2.
