When billions go missing: What you need to know about the world's tax havens

Still as active

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Often denounced, tax havens remain as active as ever in the world. But what are they and what is their impact?

Low or zero tax rates

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

While there is no official definition of a tax haven, the Organisation for Economic Co-operation and Development (OECD) considers that a country or territory must have low or zero tax rates to be considered as such.

Welcoming with their customers

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Furthermore, according to the OECD, tax havens strictly apply banking secrecy. The conditions for setting up companies or opening accounts are very relaxed. They must also be politically and economically stable.

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Uncooperative paradises

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Finally, the last criterion retained by the OECD: the very weak or non-existent cooperation of tax havens with other States deprived of part of their tax revenues.

Around the world

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

The lists of tax havens drawn up by states or international organisations contain countries from all corners of the world, ranging from the Caribbean and Central America (British Virgin Islands, Panama, Bahamas) to the Pacific islands (Fiji, Guam, Samoa, Vanuatu).

Also in Europe

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

But, according to some NGOs such as the Tax Justice Network, Europe also has tax havens not included in the official lists of the European Commission, such as the Netherlands, Luxembourg and Switzerland.

Harmful consequences

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

The existence of tax havens has several types of harmful consequences, starting with a significant loss of tax revenue for States, estimated at 480 billion euros per year, according to data cited by the French media outlet 'La finance pour tous'.

Tax distortions

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

On the other hand, tax havens push states to limit their tax rates in order to curb tax evasion. Those who benefit from this are the most mobile taxpayers, often the richest, to the detriment of the middle classes whose taxation increases.

Financial instability

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Another negative impact cited by Finance for All: financial instability. Indeed, the lack of control by regulators on site can lead financial players to take excessive risks.

A factor in crime

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Last but not least, the disadvantage of the existence of tax havens is the lack of mandatory traceability of funds, which makes them a haven for international crime.

The most harmful

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

According to a ranking carried out by the Tax Justice Network based on several indicators, the three most harmful tax havens in 2024 are the British Virgin Islands, the Cayman Islands and Bermuda, followed by Switzerland, Singapore, Hong Kong, the Netherlands and Jersey.

Two countries of the European Union

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Ninth and tenth place this year are occupied by Ireland and Luxembourg, two member countries of the European Union. Enough to strengthen tax competition between states on the European continent!

The British Spider's Web

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Made up of the United Kingdom and its territories and dependencies, such as the Cayman Islands and Bermuda, the "British spider's web" alone is said to be responsible for 31% of the risk of corporate tax fraud worldwide.

City of London money

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Quoted by Capital, the Tax Justice Network points out that the British government "has full powers to impose or veto the legislative process" in these territories and that part of the City of London's money is transferred there.

Fight against tax havens

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

How to combat the practices of tax havens? While some progress has been made in recent years, practice shows that there is no miracle recipe given the interests at stake.

The impossible international harmonization

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Harmonisation of tax regimes on a global scale would be a radical remedy, but it seems almost impossible to achieve politically. And it would not solve the problem of banking and legal havens.

A minimum tax rate

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

The introduction of a global minimum corporate tax rate of 15%, supported by France, is a first step towards ending the tax opacity enjoyed by certain companies.

Country-by-country publications

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Finance for All recalls that "the European Commission recently obtained the support of the 27 member countries of the Union for large companies to publish their profits and taxes country by country", in order to strengthen tax transparency.

Exchange of information

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Currently, the exchange of taxpayer information between tax administrations is on demand and on a voluntary basis.

Towards an automatic exchange?

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

Setting up an automatic exchange would make it possible to inform a country's tax authorities of any opening of an account abroad by one of its nationals.

More radical proposals

Still as active, Low or zero tax rates, Welcoming with their customers, Uncooperative paradises, Around the world, Also in Europe, Harmful consequences, Tax distortions, Financial instability, A factor in crime, The most harmful, Two countries of the European Union, The British Spider's Web, City of London money, Fight against tax havens, The impossible international harmonization, A minimum tax rate, Country-by-country publications, Exchange of information, Towards an automatic exchange?, More radical proposals

The NGO Oxfam is putting forward more radical proposals, such as the creation of an international tax body. But could the world's political leaders ever agree on such a decision?

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