International Journal of Applied Research
Vol. 3, Issue 8, Part C (2017)
Black money and tax havens
Black money is a socioeconomic evil. The existence of a rapidly growing black money in any economy has disastrous consequences and economies all over the world takes initiative to curb generation of black money. People & Corporations globally are able to lower their overall effective tax rates by extending operations in offshore tax havens. A tax haven is a country or place with very low effective rates of taxes. A tax haven in most cases additionally provides financial secrecy.
Thus, the leitmotif of this paper is to ascertain the role that the tax havens play in the international arena in light of the generation of black money and ways to curb it. The paper will attempt to analyse how use of tax haves helps people and corporations to lower their tax liabilities. The paper provides a description of various efforts that have been introduced so far to tackle this issue.
The paper also throws light on the incidents which aroused controversies regarding the sources of unaccounted funds invested by people from all around the world through formation of shell companies in tax haves like Panama that was disclosed later on. The paper concludes with certain overarching observations.
How to cite this article:
Jalpa Mishra. Black money and tax havens. International Journal of Applied Research. 2017; 3(8): 176-179.