Tax Havens

Why do people use them?

What is a tax haven?

• Escape from tax

• Secrecy, in various forms

• Avoidance of financial regulations

• Avoidance of criminal laws

• Escape from other rules of society, such as inheritance

or corporate governance rules

Tax havens can be whole countries, dependencies of bigger countries, or even areas within countries.

Thank you

Main problems

A country that offers foreign individuals and businesses little or no tax liability in a politically and economically stable environment.

2 and 3 slide http://www.tackletaxhavens.com/whats-a-tax-haven/

Welcome to Switzerland

Home to about a third of the world’s offshore private wealth – a whopping US$ 2 trillion

About 30,000 U.S. taxpayers have disclosed their accounts to the US Revenue since 2009.

Tax havens help rich people hide money that should be spent on schools, hospitals, roads and other public services.

Tax havens widen the gap between rich and poor people

http://3obieg.pl/wp-content/uploads/2011/10/Raje-podatkowe.jp

Tax havens help criminals hide their loot

Tax havens allow banks to dodge financial rules and regulations

Tax havens force poor people to pay the taxes of the rich

$$$?

The U.S. accounts for slightly over 21% of the global market for offshore financial services.

By the end of 2009, U.S. companies had amassed at least US$ 1 trillion in foreign profits not taxed in the U.S, a figure that had increased 70% over three years.

The most influential tax havens

1. Switzerland (FSI 1765,2)

2. Luxembourg (FSI 1454,4)

3. Hong Kong (FSI 1283,4)

4. Cayman Islands (FSI 1233,5)

5. Singapore (FSI 1216,8)

6. United States (Mainland) (FSI 1212,9)

7. Lebanon (FSI 747,8)

8. Germany (FSI 738,3)

9. Jersey (FSI 591,2)

10. Japan (FSI 513,1)

Small country but big money

6, 7 and 8 slide: http://www.tackletaxhavens.com

The cross-border flow of the global proceeds from tax evasion, corruption and criminal activities totals an estimated US$ 1-1.6 trillion per year.

Fighting tax havens

CFC rule (Controlled Foreign Corporation)

The countries with CFC rules includes the United States, the United Kingdom, Germany, Japan, Australia, New Zealand and Sweden.

Ethical issues

https://www.linkedin.com

SABMiller is the world’s second largest beer company, with an annual turnover of £12 billion and profits of £2 billion.

In Ghana, the world’s 28th poorest country, SABMiller paid zero income tax between 2008-10 after shifting millions of pounds into notorious tax havens such as Switzerland and Mauritius.

11-19th slide: http://www.tackletaxhavens.com

Polish side

Ethical issues

Money obtained from foreign companies could be spent on education, healthcare system etc.

Around 3 billions PLN of revenues from Polish companies are being located in tax havens every year.

250,000 -number of African children whose education could be paid for by the amount of tax that SAB Miller dodges paying.

Fighting tax havens

http://www.polityka.pl/tygodnikpolityka/rynek/1595037,1,ustawa-o-rajach-podatkowych-czyli-jak-nie-tworzyc-prawa.read

First country to fight tax havens was USA

Official publications of black lists of tax havens

Tax Havens

Authors: Rozycka, Senator, Szewerniak