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Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network

"Multinational corporations use highly complex structures of parents and subsidiaries to organize their operations and ownership. Offshore Financial Centers (OFCs) facilitate these structures through low taxation and lenient regulation, but are increasingly under scrutiny, for instance for enabling tax avoidance. Therefore, the identification of OFC jurisdictions has become a politicized and contested issue. We introduce a novel data-driven approach for identifying OFCs based on the global corporate ownership network, in which over 98 million firms (nodes) are connected through 71 million ownership relations. This granular firm-level network data uniquely allows identifying both sink-OFCs and conduit-OFCs. Sink-OFCs attract and retain foreign capital while conduit-OFCs are attractive intermediate destinations in the routing of international investments and enable the transfer of capital without taxation. We identify 24 sink-OFCs. In addition, a small set of five countries – the Netherlands, the United Kingdom, Ireland, Singapore and Switzerland – canalize the majority of corporate offshore investment as conduit-OFCs. Each conduit jurisdiction is specialized in a geographical area and there is significant specialization based on industrial sectors. Against the idea of OFCs as exotic small islands that cannot be regulated, we show that many sink and conduit-OFCs are highly developed countries."

Talking Disputes | The Argentina - Financial Services Dispute

This video shows how convoluted and technical the GATS is. This is not the kind of logic people want hijacking essential services like health insurance. Once its sold you can't give healthcare away. Its like a noose getting tighter and tighter. These deals are being snuck in under the radar, and a hell of a lot of people have been tricked by these tricks and also have died because of these tricks. And it ISN'T over. The carnage is just beginning.

Exploring the Role Delaware Plays as a Domestic Tax Haven (2011)

Scott D. Dyreng Duke University Bradley P. Lindsey College of William & Mary Jacob R. Thornock University of Washington "We examine how corporate tax avoidance incentives play an incremental role in explaining why firms organize subsidiaries in the state of Delaware. We also quantify the extent to which Delaware-based subsidiaries reduce corporate effective tax rates. Findings suggest that firms are more likely to have subsidiaries in Delaware if they also have subsidiaries in other states with tax rules conducive to a common tax avoidance strategy involving Delaware corporations. This empirical result suggests that taxes influence the decision to organize subsidiaries in Delaware incremental to legal and/or governance factors. In addition, the tax benefits of incorporating and operating subsidiaries in the state of Delaware are economically meaningful. For a typical firm, we document a reduction in the state effective tax rate of approximately two percentage points. This represents a reduction in state taxes of nearly 50 percent of the average state effective tax rate of 4.6 percent."

Odious Debt (IMF)

"Similarly, Anastasio Somoza was reported to have looted $100-500 million from Nicaragua by the time he was overthrown in 1979. Sandinista leader Daniel Ortega told the United Nations General Assembly that his government would repudiate Somoza's debt, but reconsidered when his country's allies in Cuba advised him that doing so would unwisely alienate Nicaragua from Western capitalist countries. Some countries have attempted to confiscate and restitute funds that an ex-ruler salted away abroad, but with mixed results. For example, Nigeria recently recouped money from Sani Abacha's family, but the Philippines has little to show for its protracted campaign to repatriate Ferdinand Marcos's fortune. Moreover, any money that has been squandered is gone forever."