MANILA,\u00a0Philippines\u2014An anti-graft watchdog said Tuesday the\u00a0Philippine\u00a0government was cheated of $3.85 billion in tax revenues in 2011, part of massive illicit money flows that totalled more than 0 billion in the past five decades.<\/p>\n
<\/p>\n
Global Financial Integrity said in a report that illicit financial outflows including proceeds from crime, corruption and tax evasion totalled $132.9 billion in a 52 year period from 1960.<\/p>\n
Another $277.6 billion illegally entered the country, predominantly through false invoicing of imports to evade tariffs.<\/p>\n
It said the government has lost at least $23 billion in revenue from customs evasion since 1990 and lost an average of $1.46 billion in tax revenue each year since 2000.<\/p>\n
The report estimated that the underground economy was equal to nearly 30 per cent of gross domestic product in 2011.<\/p>\n
The watchdog\u2019s chief economist Dev Kar, who co-authored the report with economist Brian LeBlanc, said illicit outflows have grown from an average of 2 per cent of GDP in 1970s and 1980s to 5 per cent of GDP since 2000.<\/p>\n