The End of Bank Secrecy? An Evaluation of the G20 Tax Haven Crackdown
AbstractDuring the financial crisis, G20 countries compelled tax havens to sign bilateral treaties providing for exchange of bank information. Policymakers have celebrated this global initiative as the end of bank secrecy. Exploiting a unique panel dataset, our study is the first attempt to assess how the treaties affected bank deposits in tax havens. Rather than repatriating funds, our results suggest that tax evaders shifted deposits to havens not covered by a treaty with their home country. The crackdown thus caused a relocation of deposits at the benefit of the least compliant havens. We discuss the policy implications of these findings.
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Date of creation: Feb 2012
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Tax havens ; Tax evasion;
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-05-29 (Accounting & Auditing)
- NEP-ALL-2012-05-29 (All new papers)
- NEP-BAN-2012-05-29 (Banking)
- NEP-IUE-2012-05-29 (Informal & Underground Economics)
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