Tax havens: over 30 billion euros ‘flies out of Portugal’ between 2016-2018
Tax havens are still lapping up cash “flying out of Portugal”. In the three years between 2016 and 2018, values transferred to ‘offshores’ increased by 67% (on the previous three years). The most common recipients being funds and accounts in Switzerland, Hong Kong and the United Arab Emirates.
Jornal Económico says sums involved are “equivalent to 15% of GDP” and three times more than the budget of the (beleaguered) SNS national health system.
Even worse, says the online media source: “The tax department can’t give any justification for the 67% increase in transfers compared with the previous three years (2013-2015)” – and analysts warn: “there are more and more private individuals and businesses using societies based in territories with more favourable tax regimes”.
JE suggests that the ‘significant increase’ in these kind of operations owes itself to “new rules that oblige banks to communicate ‘fractional operations that add up to 12,500 euros’.
In other words, these transfers may have always been ongoing, but previously unflagged by the banks.
Last year alone, 8.9 billion euros was transferred to offshores by an increase in both business and private clients (by 7,200 and 6,000 respectively).
Tax department figures also point to an increase in the number of transfers to 113,875 – 11,571 more than were made in 2017.