12.05.2016

Economists call for an end to tax havens

Leading economists from across the world have come together recently to call for an end to global tax havens which systematically restrict local governments from tax revenue. In advance of further Panama Papers documents being released, the economists have urged world leaders to abolish global tax havens. The economists’ letter release has been signed by the likes of Thomas Piketty and Angus Deaton. The economists believe that governments are losing tax revenue as a direct result from the existence of tax havens such as the British Virgin Islands. From a recruitment perspective, here at International Tax Search, we believe that the elimination of tax havens such as BVI will cause issues within the employment markets for many tax professionals who reside in these locations classed as ‘tax havens’. 

The article states:

The economists made the call in a letter released by the Britain-based activist group Oxfam. Signatories to the document include Columbia University's Jeff Sachs, best-selling author Thomas Piketty and Nobel Prize-winner Angus Deaton.

“Tax havens do not just happen. The British Virgin Islands did not become a tax and secrecy haven through its own efforts. These havens are the deliberate choice of major governments, especially the United Kingdom and the United States, in partnership with major financial, accounting and legal institutions that move the money," Sachs said.

The letter also came ahead of an anti-corruption summit in London that kicks off Thursday with political representatives from 40 countries as well as the World Bankand International Monetary Fund. “The abuses are not only shocking, but staring us directly in the face. We didn’t need the Panama Papers to know that global tax corruption through the havens is rampant, but we can say that this abusive global system needs to be brought to a rapid end. That is what is meant by good governance," Sachs said.

Call for end to tax havens ahead of new 'Panama Papers' release