Tax Havens: Refuge Or Optimization? An Analysis In The Context Of The Eu'S Fight Against Tax Fraud And Evasion

It is perfectly legal to conduct business through an offshore company registered in a tax haven if the legislation of that state is complied with. However, concerns regarding these tax havens are related to the possibility of hiding dirty money obtained from illegal activities (tax evasion, fraud or embezzlement of funds), since every year, at European level, billions of euro are lost when taxpayers do not declare and do not pay their tax liabilities, thereby undermining the economic stability of the European Union. In this context, tax havens represent a major challenge for the member states of the European Union, as they facilitate the shifting of profits, the concealment of the identity of beneficial owners and the artificial reduction of tax liabilities, with negative effects on the financing of public services, economic competitiveness and tax fairness.