Oxfam Report Reveals Global Super-Rich May Have Hidden $3.55tn from Tax Authorities
According to a new report from Oxfam, the global super-rich may have as much as $3.55tn concealed from tax authorities worldwide. The charity has renewed its call for a wealth levy and urged governments to close tax loopholes, highlighting the significant scale of offshore holdings that continue to evade taxation.
Offshore Wealth Increases to $13.25tn in 2023
Building on research from academics including French economist Gabriel Zucman and the EU Tax Observatory, Oxfam stated that total wealth held offshore has risen substantially, reaching $13.25tn (£10tn) in 2023—the latest year for which estimates are available. While the share of these secretive holdings hidden from tax authorities has decreased since the introduction of automatic information exchange systems in 2016, Oxfam estimates that approximately $3.55tn remains shielded from tax, equivalent to more than 3% of global GDP.
Previous research suggests that 80% of this hidden wealth, or over $2.84tn, is likely owned by the richest 0.1% of households globally. This means that this tiny elite group holds untaxed assets comparable to the total wealth of the poorest half of the world's population.
Marking 10 Years Since the Panama Papers
The report was released to commemorate the 10th anniversary of the Panama Papers investigation, which exposed the inner workings of tax havens. Christian Hallum, Oxfam's lead on tax, emphasized the broader implications, stating, "This isn't just about clever accounting—it's about power and impunity. When millionaires and billionaires stash trillions of dollars in offshore tax havens, they place themselves above the obligations that bind the rest of society."
Oxfam is actively involved in a global campaign advocating for a progressive wealth tax, including through United Nations negotiations on tax cooperation frameworks. The charity also called for the inclusion of countries in the global south in the Common Reporting Standard, which facilitates information exchange between jurisdictions.
Calls for Wealth Tax in the UK
In the UK, Oxfam is urging the Labour Party to implement a wealth tax. Chancellor Rachel Reeves has already taken steps to increase taxes on wealth by raising capital gains tax rates and announcing a new council tax surcharge for properties valued over £2m. She also extended reforms initiated by her Conservative predecessor, Jeremy Hunt, and abolished the "non-dom" regime that allowed some foreign-born residents to avoid UK taxes.
However, Oxfam believes further action is necessary. Green Party leader in England and Wales, Zack Polanski, has echoed this sentiment, stating that a wealth tax would be a "day one priority" for his party in government. Polanski proposed an annual tax of 1% on assets exceeding £10m, including property, and 2% on assets above £100m, which the Green Party claims could raise about £15bn annually.
Debate Over Tax Reform Priorities
Despite these proposals, the Institute for Fiscal Studies thinktank argues that reforming existing wealth taxes, such as council tax and capital gains, should take precedence over new levies. Additionally, the House of Commons public accounts committee has criticized HM Revenue and Customs for lacking even basic knowledge, such as the number of billionaires in the country.
This report underscores ongoing challenges in global tax evasion and the urgent need for policy reforms to address inequality and ensure fair taxation systems worldwide.
