Colombia's super-rich evade, avoid and pay less taxes than the poor
16 days ago
- #tax-evasion
- #Colombia
- #wealth-inequality
- 40% of Colombia's wealthiest 0.01% admit to tax evasion, hiding assets in tax havens and using complex structures like trusts.
- Tax evasion in Colombia amounts to 8% of GDP annually, over $130 billion, exacerbating social inequality.
- The wealthiest 1% hold 40% of Colombia's wealth, while the poorest 50% hold just 2%, highlighting extreme inequality.
- Colombia's tax system is regressive, relying heavily on VAT, which affects the poor more than direct taxes on wealth.
- Ultra-rich Colombians pay proportionally less in taxes (17 cents per dollar) than the poorest (21.1 cents per dollar).
- Tax evasion strategies include hiding assets abroad, using offshore companies, and creating family businesses to deduct personal expenses.
- Panama is a key tax haven for Colombian elites, with many using Mossack Fonseca before its dissolution.
- Automatic financial information exchange agreements have revealed $10.7 billion in undeclared assets held abroad by Colombians.
- Wealth taxes in Colombia are often avoided by underreporting asset values or using legal structures to obscure ownership.
- Proposals like a global minimum wealth tax (2% annually) aim to address tax avoidance by the ultra-rich.