Money at the Docks of Tax Havens: A Guide

Hebous, Shafik

doi:10.1628/001522114x684547

Cited by 22 publications

(3 citation statements)

References 59 publications

(43 reference statements)

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“…As explained by Slemrod and Wilson (2009), tax havens can sell 'concealment services' for foreign firms and protection from national taxation. This secrecy aspect associated with tax havens can create a 'supply side' for corruption that can harm countries, especially developing countries, by facilitating illicit financial flows (Christensen, 2012;Hebous, 2014;Hebous & Lipatov, 2014;Schjelderup, 2016). In fact, TI, which cooperated with constructing the FSI, recognises that the CPI tells only one part of the corruption story.…”

Section: T a B L Ementioning

confidence: 99%

A clean and discreet service: The role of corruption and secrecy in profit shifting by multinational firms

Binhadab

Gillanders

McCluskey

2023

J of Intl Development

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We investigate the importance of corruption in shaping the profit-shifting behaviour of multinational firms. Using country-level panel data, we find a significant and positive correlation between corruption and profit shifting. Our findings are consistent with several theoretical arguments predicting that corruption may both facilitate and provide an incentive to firm behaviour that deprives poorer countries of much needed tax revenues. Our findings are robust across a number of corruption and profit shifting measures, as well as to an instrumental variable approach that controls for the potential endogeneity between profit shifting and corruption. Our findings also indicate a negative and significant relationship between financial secrecy and outward profit shifting. We conclude that corruption and financial secrecy undermine global efforts to tackle profit shifting by multinational firms.

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Section: T a B L Ementioning

confidence: 99%

A clean and discreet service: The role of corruption and secrecy in profit shifting by multinational firms

Binhadab

Gillanders

McCluskey

2023

J of Intl Development

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“…The rst documented practices of negligent regulation date from the end of the 19th century in the states of Delaware and New Jersey (United States of America -USA), appearing in Europe by 1920, rstly in Switzerland (canton of Zug) and then in Zurich and Liechtenstein. The appearance of the tax haven term occurred later in the middle of the 20th century (Hebous, 2014).…”

Section: Tax Haven De Nitionmentioning

confidence: 99%

Empirical Research on Tax Havens

Dias

Miranda

2022

Preprint

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The main goal of this study is to analyse and characterize the empirical research produced in the time period between the years 2008 and 2018 on tax havens. In order to achieve this goal, an analysis of the selected sample was performed in order to characterize the investigators and the content of their articles. The results of the study show that collective authorship is predominant, being that articles with two authors are more frequent, and the majority of the researchers in the sample contributed with only one article. Geographically, the continent with the highest contribution was Europe and analysing by country the United States of America held the highlighted role. Regarding the universities, Australian universities presented more affiliated authors. With regards to the content of the articles, the thirty six articles from the sample were published in twenty seven different journals, being that 2015 was the year with the most publications. Other than the topic tax havens, tax avoidance and tax evasion where the most addressed themes by the researchers. Subject classification codes: H26; F23; M41

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“…We …rst consider the corrupt country as having a small open economy that does not a¤ect the net interest rate. 9 The second-order condition is presented in the appendix. 8 …”

Section: Equilibriummentioning

confidence: 99%

A journey from a corruption port to a tax haven

Hebous

Lipatov

2014

Journal of Comparative Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We sketch a model according to which tax havens attract corporate income generated in corrupted countries. In our framework, tax havens have two opposite effects on welfare. First, tax havens' services have a positive effect on welfare through encouraging investment by firms fearing expropriation and bribes in corrupt countries. Second, by supporting corruption and the concealment of officials' bribes, tax havens discourage the provision of public goods and hence have also a negative effect on welfare. The net welfare effect depends on the specified preferences and parameters. One source of this ambiguity is that the presence of multinational firms in corrupted countries is positively associated with demanding tax havens' operations. Using firm-level data, we provide empirical support for this hypothesis. Terms of use: Documents in EconStor mayJEL-Code: F230, H250, H320.

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Money at the Docks of Tax Havens: A Guide

Cited by 22 publications

References 59 publications

A clean and discreet service: The role of corruption and secrecy in profit shifting by multinational firms

A clean and discreet service: The role of corruption and secrecy in profit shifting by multinational firms

Empirical Research on Tax Havens

A journey from a corruption port to a tax haven

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