What is the Tax Justice Network?
- Tax Justice Network International Secretariat Limited is an NGO based in UK.
- It is is an advocacy group consisting of a coalition of researchers and activists with a shared concern about tax avoidance, tax competition and tax havens.
- In July 2012, it had published claims that few wealthy individuals had deposits worth at least $21 trillion (£13 trillion) in secretive tax havens.
What is Financial Secrecy Index?
- Financial Secrecy Index highlights places around the world that provide safe havens for tax evaders.
- It was a tool for understanding global financial secrecy, tax havens or secrecy jurisdictions, and illicit financial flows.
- It observed that world's biggest and richest countries were the main recipients of illegal money.
- European countries like Greece, Italy and Portugal were destroyed by decades of tax evasion, it noticed.
What is Tax Haven?
A tax haven is a country that offers foreign individuals and businesses little or no tax liability in a politically and economically stable environment. They also provide little or no financial information to foreign tax authorities.
Super rich hold $32 trillion in offshore havens:TJN
22 Jul 2012
- A Tax Justice Network report estimated that the amount of black money deposited by 'global super-rich elite' in offshore accounts was 13 trillion pounds.
- The report suggested that the capital that flowed out of developing economies in 1970s could have paid off their debt.
- James Henry, former chief economist at consultancy McKinsey said in the report that money had leaked into countries like Switzerland.
Switzerland top tax haven, US at number 3
3 Nov 2015
- In the financial secrecy index (FSI) 2015 unveiled by the Tax Justice Network (TJN), Switzerland retained its top spot.
- U.S. was on the 6th position in 2013 and jumped to number 3 in the lastest report.
- According to TJN, Switzerland's banking secrecy was far from dead.
- Though there were several improvements but the average secrecy score had fallen to 60 from 66 (in FSI-2013).
FSI report on India
3 Nov 2015
- India was ranked at number 45 and called as moderatively secretive.
- India accounted for slightly under 1.5% of the global market for offshore financial services, making it a large player compared with other secrecy juridictions.
- The report said that India uses appropriate tools for efficiently analysing tax related information .
- India has ratified the five-most relevant international treaties relating to financial transparency.