Offshore financial activity and tax policy
Evidence From a Leaked Data Set
Bibliographic Data
| ID | 6296143 |
|---|---|
| Authors | Paul Caruana‐galizia (Humboldt-Universität zu Berlin), Paul Caruana-Galizia, Matthew Caruana-Galizia (Investigative Reporters and Editors) |
| Year | 2016 |
| Volume | 36 |
| Issue | 3 |
| Pages | 457-488 |
| Publication date | 2016-09-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Journal of Public Policy (JOURNAL) |
| Journal identifiers | ISSN: 0143-814X • E-ISSN: 1469-7815 |
| Publisher | Cambridge University Press (CUP) (PUBLISHER) |
| DOI | 10.1017/s0143814x16000027 |
| OpenAlex | W2332213865 |
| Language | EN |
| Citations received | 4 |
| References cited | 8 |
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
Business · Control (management · Directive · Economics · European union · International economics · International trade · Jurisdiction · Political science · Public economics · Scope (computer science · Accounting · Corporate Taxation and Avoidance · Finance · Law · Taxation and Compliance Studies · Taxation and Legal Issues
| Unique citing works | 4 |
|---|---|
| Citations per year | 0.5 |
| Citation span | 2018 - 2023 (6) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 4 |