American University Economics Paper
Description
This paper is designed to allow students to study and evaluate
possible remedies to the problems caused by inequality. Papers should be 7-10 pages long, in 12 point type with 1.5 line spaces. All papers must include a bibliography using no less than 5 sources. These sources should be economics journal articles, and scholarly books. Wikipedia may be used for background information, but may not be included among the 5 sources. My topic is:11) Tax Havens and Tax Evasion: Revelations from the Panama Papers and Pandora Papers have put a spotlight on the use of shell companies, wealth management services and tax havens to avoid taxation. Efforts to freeze or seize the assets of Russian oligarchs also point in the same direction: wealth inequality has been increased by well-organized evasion strategies. Analyze what can be done to limit tax evasion through tax havens and other means. Look at recent efforts to strengthen information disclosure and enforcement, including the OECDs Inclusive Framework on Base Erosion and Profit Sharing https://www.oecd.org/tax/beps/beps-actions/ as well as https://www.oecd.org/naec/events/understanding-the-economy/the-hidden-wealth-of-nations-the-scourge-of-tax-havens.htm. You can also examine the work of the US Department of Treasurys FinCen and their use of Geographic Targeting Orders to find the true owners of real estate bought in cash by shell companies, discussed in https://www.brookings.edu/research/the-impact-of-beneficial-ownership-transparency-on-illicit-purchases-of-us-property/. Also, watch the 2019 film The Laundromat and read Brooke Harrington, Capital Without Borders, ch 5 Wealth Management and InequalityThere is my outline attached, please start writing your paper based on this outline.
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Tax Havens and Tax Evasion Outline
Introduction
1. Introduction to international taxation- what is, why is it important
2. What is tax evasion
o Difference between tax avoidance and tax evasion
o Why does it happen?
Complex and poorly regulated tax system
3. Main forms in which tax evasion can be carried
4. What are tax havens & main tax havens worldwide
Empirical evidence
1.Recent tax evasion scandals -to show how big companies use shell companies,
wealth management services and tax havens to avoid taxation in real life.
o Revelations from the Panama Papers
2.Look for 1 or 2 older scandals relating tax evasion scandals and highlight how
this practice has always been present and is hard to eradicate.
3.
Economic implications of tax evasion
1.Pure economic consequences
o Taxes are the main instrument to cover public expenses.
o Geopolitical tensions between countries.
o Linked to corruption
o Affects smaller businesses
o Limits economic growth
2.Social consequences
o Taxes are an important instrument that governments use to redistribute
wealth among the population. Without them, inequality will increase?
the rich get richer, the poor become poorer
o Efforts to freeze or seize the assets of Russian oligarchs also point in the
same direction: wealth inequality has been increased by well-organized
evasion strategies.
o Tax evasion entails huge losses, thus harming the need to cover public
expenses
Government response-International regulation
1. From an economic point of view, why is it hard to end with this problem?
o Needs coordination between all countries ? hard because of conflicting
interests ? no incentives to cooperate ? FREE RIDER problem
o There is no supranational authority with the ability to punish countries
who deviate
o Information is costly ? it takes time, money, and a lot of work to
identify those who are involved in tax evasion
2. Main regulation attempts
3. How countries have been trying to fight tax evasion ? mention some of
the laws, agreements, etc
4. How international institutions have been trying to fight tax evasion ?
they complement national governments actions and can even help to
create greater incentives for countries to cooperate against tax evasion.
5. More recent concerns and main policies proposed
Conclusions
Toughen sanctions.
Increase inspections.
Lower taxes.
Etc
REFERENCES
BEPS Actions – OECD. (s. f.). BEPS Actions. https://www.oecd.org/tax/beps/bepsactions/
Understanding the economy – New Approaches for Economic Challenges. (s. f.). The
Hidden Wealth of Nations: The Scourge of Tax Havens – Gabriel Zucman.
https://www.oecd.org/naec/events/understanding-the-economy/the-hiddenwealth-of-nations-the-scourge-of-tax-havens.htm
Sala-i-Martin, X., & Roubini, N. (1995). A Growth Model of Inflation, Tax Evasion,
and Financial Repression.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=226898
Alm, J. K. (2020, 19 febrero). Tax evasion, market adjustments, and income
distribution. Tax Evasion, Market Adjustments, and Income Distribution.
https://wol.iza.org/articles/tax-evasion-labor-market-effects-and-incomedistribution/long#:%7E:text=As%20a%20result%2C%20evasion%20increases,t
he%20economy%20with%20perfect%20enforcement.
Lénártová1, G. (2020). The Economic and Social Consequences of Tax Havens in the
World. https://doi.org/10.1051/shsconf/20208301041
Economic growth, corruption and tax evasion. (2011, 1 enero). ScienceDirect.
https://www.sciencedirect.com/science/article/abs/pii/S0264999310001331
Dharmapala, D. (2008). What problems and opportunities are created by tax havens?
https://doi.org/10.1093/oxrep/grn031
Garcia Alvarado, F., & Antoine, M. (2022). The network structure of global tax evasion
evidence from the Panama papers. https://doi.org/10.1016/j.jebo.2022.03.024
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Explanation & Answer:
10 Pages
Tags:
economics
tax havens
tax evasion
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