Tax evasion is the largest economic crime in the world (in terms of monetary loss), costing trillions of dollars to governments around the globe. A 2011 study by The Tax Justice Network estimates that on a global scale, total tax evasion is in excess of US$3.1 trillion, or about 5.1% of world GDP.1 And thatís just the known tax evasion and noncompliance; it doesnít include the underground economy and cash businesses.
The per-capita figure is similar in Canada, representing about $45 billion a year. The European Union loses an estimated Ä200 billion in value-added tax alone, not including corporate or excise taxes. Tax evasion represents 4 to 5 percent of gross domestic product in Sweden and Japan.