TAX HAVEN COUNTRIES AND THEIR RELATIONSHIP TO INTERNATIONAL TAX EVASION
Keywords:
tax, tax system Paradise countries are taxed, international tax evasion, tax lossesAbstract
The first appearance of tax havens was associated with attracting foreign investments, but they have become one of the most important mechanisms for international tax evasion in the current era, by enabling negative practices of individuals and companies, which costs the global tax system a loss of 724 billion dollars annually, 74.64% of the total losses. Therefore, this study came to shed light on this phenomenon, which has witnessed a significant expansion in recent years, and to urge the establishment of international strategies to limit its expansion.
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Reforming global tax systems to improve their efficiency in order to adapt them to the current situation.
Expanding the tax base to include foreign assets and income streams through the enactment of a wealth tax and a tax on profits for individuals and companies.
Developing mechanisms and means to control capital flows to and from the state.
Developing a global information system for exchanging information between different countries of the world based on artificial intelligence technologies.
Tracking and addressing loopholes in international laws and treaties that individuals and companies can exploit to evade their tax obligations.
Enacting more legislation and laws to regulate capital flows, with tougher penalties for individuals and companies who evade paying taxes.
Enhancing the principles of transparency and disclosure and issuing an international law that criminalizes all types of secrecy that would cover illegal financial flows, money laundering crimes, international tax evasion, and oblige financial institutions to know their customers.
Developing countries, in particular, must work to develop their own infrastructure, upgrade the national economy, and grant more advantages and incentives to local investors to improve the competitiveness of the national economy.
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