By Roger James Posted on Bristol24-7

UK at centre of global tax system that is a colossal betrayal of people here and in the poorest countries who are struggling to get by, writes Roger James

People using tax havens are depriving the world of $156 billion (£102bn) in lost revenue, enough money to end extreme poverty twice over. To end extreme poverty would mean providing every person in the world with a minimum income of $1.25/day. This is estimated to cost $66 billion.

The UK is a key global player on the tax haven board. Of the $18.47 trillion (£12tn) that Oxfam estimates is being held by individuals in tax havens around the globe over a third – $7.18 trillion (£4.7tn) – is sitting in accounts in British Overseas Territories and Crown Dependencies

Large numbers of tax havens or “offshore jurisdictions” have been listed by sources such as US Government Accountability Office – of these jurisdictions, 21 are EU-related jurisdictions and 10 are UK (Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Guernsey, Isle of Man, Jersey, Montserrat and the Turks and Caicos Islands).

Oxfam added two other major tax havens: Delaware and the Netherlands. Despite the fact a deal was done earlier this month to get some of these tax havens to be more transparent and share tax information, there is no tax deal on the table that will benefit poor countries who are struggling to reclaim the billions of pounds they are owed.

The $156billion (£102bn) of lost tax revenue estimated by Oxfam is just a fraction of total tax loss, as it only reflects the amount of tax individuals are neglecting to pay and doesn’t include the tax dodged by companies that , as reported by Christian Aid, costs poor countries more than $160 billion (£105 bn) a year.

IF campaignThe UK is at the centre of a global tax system that is a colossal betrayal of people here and in the poorest countries who are struggling to get by. Britain is talking tough on tax, whilst continuing to usher a third of the world’s wealth into UK tax havens. It is a moral outrage and a scandal that this is taking desperately needed cash from poor countries as well as from citizens who are being hit by austerity measures closer to home. As this video says, it’s time to tackle tax havens!

This week David Cameron attended an EU Summit where European heads of state and government turned their attention to the unfair global tax system. The EU needed to take serious action because two thirds of offshore wealth – $12.29trillion (over £8tn) – is sitting untaxed in European linked tax havens (including those linked to the UK). The EU failed to establish a blacklist of tax haven or any agreement that EU member states will impose countermeasures sanctions against tax havens and those using them.

The UK and Europe cannot stand by and watch more people fall victim to the bite of austerity while billions are lost from the public purse.

Oxfam is part of the Enough Food for Everyone IF campaign, which is calling on the G8 to make all tax havens join a multilateral agreement to share tax information, so that every country – especially the poorest – can tax companies and individuals fairly, and for an end to secrecy that hides the ultimate owner of assets held offshore so that they can avoid the tax man.

Tax justice has a been a long running campaign but we may now see some action. Politicians will only act if the public demand change. You can start by signing Oxfam’s petition. Coaches from Bristol and other South West centres will be travelling to the Big IF London event in Hyde Park on Saturday, June 8 which will begin IF’s 10-day campaign in the lead up to the G8 summit in Lough Erne, Northern Ireland on June 17 and 18. Tax Dodgers – justice may finally visit your secret haven.

Roger James is a campaigner for Oxfam South West in Bristol

For more on this story go to:

http://www.bristol247.com/2013/05/24/tax-dodgers-justice-may-finally-visit-your-secret-haven-46804/