2014/11/01 by Gabriel Zucman · 596 citations
Business, Management and Accounting · Economics, Econometrics and Finance · #Corporate Taxation and Avoidance #Taxation and Compliance Studies #Taxation and Legal Issues #Tax haven #Tax avoidance #Tax evasion #Economics #Business #International taxation #Double taxation #Finance #Monetary economics #Public economics #Economic policy #Tax reform
paper · pdf · doi:10.1257/jep.28.4.121
published in The Journal of Economic Perspectives 28(4), 121-148 (American Economic Association)
openalex publication_date 2014/11/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/31
This article attempts to estimate the magnitude of corporate tax avoidance and personal tax evasion through offshore tax havens. US corporations book 20 percent of their profits in tax havens, a tenfold increase since the 1980; their effective tax rate has declined from 30 to 20 percent over the last 15 years, and about two-thirds of this decline can be attributed to increased international tax avoidance. Globally, 8 percent of the world's personal financial wealth is held offshore, costing more than 200 billion to governments every year. Despite ambitious policy initiatives, profit shifting to tax havens and offshore wealth are rising. I discuss the recent proposals made to address these issues, and I argue that the main objective should be to create a world financial registry.