Tax Evasion – Illegal Use of Tax Havens Amounts to $6 Trillion
Tax evasion or tax crime occurs when people abuse the tax and superannuation systems through intentional and dishonest behaviour with the aim of obtaining a financial benefit. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability and includes dishonest tax reporting, such as declaring less income, profits or gains than the amounts actually earned or overstating deductions.
Tax expert Gabriel Zucman (in his book, ‘The Hidden Wealth of Nations: The Scourge of Tax Havens’) estimates that around four-fifths of money in offshore bank accounts is there in breach of the tax laws of other countries. He puts the total amount of dodgy cash in tax havens at $6 trillion.
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"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2