Lists of international tax havens are compilations that identify countries or jurisdictions offering low or no tax liabilities to foreign individuals and corporations, often with additional benefits such as financial secrecy. These lists are produced by various organizations and entities, each using different criteria and methodologies. The primary purpose of these lists is to highlight regions that facilitate tax avoidance and evasion, potentially undermining the tax bases of other countries. Below are the main types of lists and some key examples:
Governmental Lists
Governmental lists are qualitative and political, focusing on jurisdictions that do not meet certain international standards for transparency and information exchange. These lists rarely include member states of the issuing organizations and are often criticized for their political nature.
- European Union (EU) List: The EU periodically updates its list of non-cooperative jurisdictions for tax purposes, identifying countries that do not adhere to EU standards on tax transparency, fair taxation, and anti-BEPS (Base Erosion and Profit Shifting) measures.
- OECD List: The Organisation for Economic Co-operation and Development (OECD) has historically published lists identifying tax havens based on criteria such as transparency and information exchange. As of 2002, jurisdictions like Andorra, Liechtenstein, and Monaco were listed but have since made commitments to meet OECD standards, resulting in no current listings as uncooperative tax havens.
Non-Governmental Lists
Non-governmental lists use quantitative methods to rank jurisdictions based on their role in global tax avoidance. These lists are considered more objective, focusing on metrics like effective tax rates, legal connections, and the quantum of profits shifted.
- Financial Secrecy Index (FSI): Published by the Tax Justice Network, the FSI ranks jurisdictions based on their secrecy laws and the scale of financial activities, highlighting places like Switzerland and the United States for their roles in concealing wealth.
- Corporate Tax Haven Index (CTHI): This index ranks jurisdictions by their complicity in helping multinational corporations underpay corporate income tax, based on a combination of their Haven Score and Global Scale Weight. The British Virgin Islands, Cayman Islands, and Bermuda are notable examples.
Academic and Research-Based Lists
Research and academic studies have produced lists based on various indicators of tax haven activity, such as U.S. tax inversions and GDP-per-capita distortions. These studies often identify both traditional and emerging tax havens, including countries like Ireland, Bermuda, and the U.K., as well as jurisdictions like Taiwan and Mauritius for their roles in global tax avoidance networks.
Ethical and Advocacy Group Lists
Organizations focused on tax justice and ethical financial practices also compile lists of tax havens. For example, Ethical Consumer uses a methodology based on the Financial Secrecy Index and academic research to identify jurisdictions likely involved in corporate tax avoidance, resulting in a list that includes both small and large population countries known for their tax haven status.
In summary, lists of international tax havens are diverse and serve various purposes, from highlighting jurisdictions undermining global tax fairness to guiding policy reforms and informing public debate on tax justice and financial transparency.
—
This page was last updated on March 29, 2024.
–