Over half of the world’s largest tax havens are based in Europe. The revelation comes from data presented in a new study titled ‘The Missing Profits of Nations’ wherein three economists have compiled a list of tax havens. According to the researchers, 92% of diverted profits for tax purposes ends up in just 11 tax havens, of which six are European.
Despite the global outrage that both the Panama Papers and the Paradise Papers stirred up, and a subsequent ‘blacklist’ campaign by the EU to target corporate tax avoidance, it seems the practice of multinationals stashing their cash in tax havens is as strong as ever. The study shows that just 11 jurisdictions soak up some €532 billion in profits, as companies continue to leverage legal loopholes to move profits away from domestic tax regimes.
For some, the definition of a tax haven is a ‘pure’ tax