Offshore financial activity and tax policy: evidence from a leaked data set
| Autor: | Paul Caruana-Galizia, Matthew Caruana-Galizia |
|---|---|
| Jazyk: | angličtina |
| Rok vydání: | 2016 |
| Předmět: |
tax havens
Double taxation Public Administration tax evasion Management Monitoring Policy and Law Tax reform Beneficial ownership 0502 economics and business 050602 political science & public administration ddc:330 media_common.cataloged_instance 050207 economics European union Savings Directive media_common Finance Tax policy 320 Politikwissenschaft business.industry 300 Sozialwissenschaften 330 Wirtschaft 05 social sciences Tax avoidance International taxation offshore centres 0506 political science Value-added tax ddc:320 ddc:300 offshore leaks business |
| Popis: | We assess the European Union’s (EU) most significant international tax policy. The 2005 Tax and Savings Directive obliges cooperating jurisdictions to withhold tax or report on interest income earned by entities whose beneficial owner is an EU resident. As the Directive applies only to beneficial ownership in cooperative jurisdictions, it can be circumvented by transferring ownership to a non-EU resident or company or by transferring the entity to a non-cooperative jurisdiction. Using a database on individual offshore entities leaked from two firms in 2013, we compare the response of EU-owned entities with a control group of non-EU-owned entities. We show that the growth of EU-owned entities declined immediately after the Directive’s implementation, whereas that of non-EU-owned entities remained stable. We observe the substitution of EU ownership for non-EU ownership, as well as the substitution of cooperative for non-cooperative offshore jurisdictions. This calls for anti-evasion policies that are broader in scope and scale. |
| Databáze: | OpenAIRE |
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