It is estimated that between 20-31 trillion dollars are lost globally every year by individuals and corporations secretly moving their money to tax havens, countries such as Hong Kong that have relatively low taxation rates. Firstly, let us clarify the definition of “lost” in this context. The Canadian government is whining that 10 billion dollars a year are being lost to secret jurisdictions, but this is simply not the case. Though these tax evaders reduce the government’s revenue, the money is far from having vanished. Rather, it is saved by the citizens of Canada, which gives buyers more power and supports the health of the economy. If all individuals and corporations paid their taxes honestly, the economy may slow down simply because that money would be cycling back in slower than it would be leaving, triggering economic panic, instigated government to perhaps reduce taxes, increase wages, and work to re-strengthen the economy in a hurry. The way I see it, tax-evasion is in essence cutting that process short. Sure, it’s unfair for those that do pay the taxes, but everything isn’t fair. In response, the government can 1.) Increase taxes in attempt to make up the losses, which would be a weak move as it may just provoke further tax evasion, or 2.), more effectively, they could reduce unjustified spending and make up the losses through cost cutting.