According to a report by the Tax Justice Network, a global organisation advocating for tax justice, in 2020, the estimated global wealth held in offshore tax havens was approximately 10.9% of global GDP, with the report emphasizing the substantial scale of tax evasion.
In terms of specific countries, various reports and estimates have provided insights into the prevalence of tax evasion. For instance:
- In the United States, the Internal Revenue Service (IRS) estimated the annual tax gap - the difference between taxes owed and those paid - to be around USD 441 billion for the fiscal year 2018.
- In the United Kingdom, the House of Commons Public Accounts Committee reported that an estimated GBP 35 billion was lost to tax evasion and fraud in 2018-2019.
- In India, a study by the National Institute of Public Finance and Policy estimated that the country's "black economy," which includes tax evasion and other forms of economic activity not reported to authorities, could account for around 25% of the country's GDP.
These examples illustrate that tax evasion is a complex and systemic issue that exists to varying degrees in different parts of the world. Governments, tax authorities, and international organisations continually strive to address tax evasion and promote tax compliance through legal frameworks, enforcement measures, and international cooperation.
