Information exchange and tax haven investment in OECD securities markets Jost H. Heckemeyer and Aaron K. Hemmerich
By: Heckemeyer, Jost Heinrich
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Contributor(s): Hemmerich, Aaron Karl.
Material type: 
ArticlePublisher: 2020Subject(s): INTERCAMBIO DE INFORMACION TRIBUTARIA | PARAISOS FISCALES | EVASION FISCAL | MERCADOS FINANCIEROS | ORGANIZACION DE COOPERACION Y DESARROLLO ECONOMICO
In:
National Tax Journal v. 73, n. 2, June 2020, p. 291-330Summary: Exploiting rich International Monetary Fund (IMF) data on bilateral portfolio investment stocks, we document that tax haven-outbound foreign portfolio investment (FPI) in Organisation for Economic Co-operation and Development (OECD) securities markets shows a significantly different response to tax information exchange as compared to outbound FPI from nonhavens. This is evidence of a tax evasion component in tax haven portfolio assets located in the OECD. The total effect of a new information exchange agreement on the stock of haven-outbound FPI is approximately -3.5 percent, on average, but with considerable variation across the 21 tax havens included in this study. Bahrain, Jersey, and Macao show the strongest declines in outbound FPI holdings after increasing transparency through additional information exchange agreements, followed by the Bahamas, the Cayman Islands, the Isle of Man, and Singapore.
| Item type | Current location | Home library | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Artículos | IEF | IEF | OP 233/2020/2-1 (Browse shelf) | Available | OP 233/2020/2-1 |
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Exploiting rich International Monetary Fund (IMF) data on bilateral portfolio investment stocks, we document that tax haven-outbound foreign portfolio investment (FPI) in Organisation for Economic Co-operation and Development (OECD) securities markets shows a significantly different response to tax information exchange as compared to outbound FPI from nonhavens. This is evidence of a tax evasion component in tax haven portfolio assets located in the OECD. The total effect of a new information exchange agreement on the stock of haven-outbound FPI is approximately -3.5 percent, on average, but with considerable variation across the 21 tax havens included in this study. Bahrain, Jersey, and Macao show the strongest declines in outbound FPI holdings after increasing transparency through additional information exchange agreements, followed by the Bahamas, the Cayman Islands, the Isle of Man, and Singapore.
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