The Vatican is readying itself to declare tax evasion as 'socially unjust', as Pope Benedict XVI works on a doctrinal pronouncement that will condemn the practice.

The Times reports that in his second encyclical, the most powerful statement made by the Pope, Pope Benedict will denounce tax havens and offshore bank accounts held by wealthy individuals.

The Pope will argue that these practices reduce tax revenues which are meant for the benefit of society as a whole. He is also expected to argue that the globalised economic world needs to be regulated so that it avoids injustice and discrimination.

The news of the contents of the encyclical follows a determined crackdown on tax evasion by the Italian government lead by Romano Prodi, a devout Catholic. Prodi has called on the Church to speak out on tax evasion.

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