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Super rich hold $32 trillion in offshore havens

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July 22, 2012, 2:04 p.m. | World — by Reuters

A protestor holds fake bank notes on which is written "G8/G20 in France : help liberate money from tax havens" in front of a cash dispenser on May 11, 2011 in Rouen, northwestern France, during a demonstration to denounce the next G8 summit, slated for May 26 and 27 in the French northwestern city of Deauville. Demonstrators also painted the shop window of banks to protest against "the atrocities of which the world of finance is guilty".
© AFP

Reuters

LONDON (Reuters) - Rich individuals and their families have as much as $32 trillion of hidden financial assets in offshore tax havens, representing up to $280 billion in lost income tax revenues, according to research published on Sunday.

 The study estimating the extent of global private financial wealth held in offshore accounts - excluding non-financial assets such as real estate, gold, yachts and racehorses - puts the sum at between $21 and $32 trillion.

The research was carried out for pressure group Tax Justice Network, which campaigns against tax havens, by James Henry, former chief economist at consultants McKinsey & Co.

He used data from the World Bank, International Monetary Fund, United Nations and central banks.

The report also highlights the impact on the balance sheets of 139 developing countries of money held in tax havens by private elites, putting wealth beyond the reach of local tax authorities.

The research estimates that since the 1970s, the richest citizens of these 139 countries had amassed $7.3 to $9.3 trillion of "unrecorded offshore wealth" by 2010.

Private wealth held offshore represents "a huge black hole in the world economy," Henry said in a statement.

(Reporting by Chris Vellacott)

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