When it comes to the dubious world of offshore wealth and the respective tax losses subsequently inflicted on other countries, not only does the UK rank second, but a further three British overseas territories make the top 10.
In fact, when these tax losses to other nations via this offshore wealth are combined, it sits at a staggering £64.5bn, according to new research.
By taking advantage of the tax loopholes available through offshore investment, wealthy individuals and organisations around the world are able to streamline the tax they pay.
While it’s a very grey area that often attracts some unsavoury practices and people, it’s not, in itself, illegal.
“It’s fair to say that UK tax laws are fairly rigorous and while there are ways to improve your tax efficiency, those with a substantial level of wealth will often exploit a myriad of loopholes in order to dramatically reduce the tax they owe,” said Bradley Post, CEO of RIFT Tax Refunds, the tax refund firm that carried out the research, which focused on the world’s 10 worst offenders.
In total, the combined tax lost to offshore wealth across the UK and these three British overseas territories sits at a huge £64.5bn per year, Post said.
“One of these loopholes is the process of holding wealth within offshore tax havens but while the legalities are complex, it’s not technically illegal,” he added.