Research Handbook on the Economics of Tax Havens

The authors note that there is no comprehensive summary of tax havens. Whether this is accurate (I have no reason to doubt it), Research Handbook on the Economics of Tax Havens certainly offers a timely exploration of the multifaceted world of tax havens. It features contributions from leading minds across various fields, including economics, accounting, political science and tax law.

The book’s ambitions are grand and it covers much ground. It systematically explores the mechanisms and consequences of corporate income tax avoidance and personal income tax evasion, shedding light on their profound impact on individuals, multinational firms, governments, and the global economy.

The volume is structured into five thematic parts: an introduction to the need for economic research on tax havens; the effects of tax havens in corporate taxation; personal income tax aspects; business models of tax havens; and the regulation of tax havens. The world of tax havens and their economics is wide-ranging and intricate. This books looks to traverse much of this, and it seems a good way to organise the extensive issues and commentary.

One of the handbook’s strengths lies in its interdisciplinary approach. For example, the chapter on ‘Data leaks and tax havens’ by Hannes F Wagner and Stefan Zeume highlights how whistleblower revelations have shed light on clandestine financial activities, prompting policy reforms.

The text does not shy away from difficult topics. For example, there is a chapter titled ‘Crime havens: tax planners and financial institutions rub shoulders with criminals’. Another looks at the dual role of tax havens as tools for economic efficiency and as sources of ethical and policy concerns. There is discussion on the OECD’s Pillar Two initiative and the Global Minimum Tax, which provides discourse on contemporary efforts to establish a more equitable global tax framework.

There are also chapters that deal with live issues such as regulatory responses to tax avoidance and evasion. The chapter ‘Information exchange and tax havens’ assesses the effectiveness of international cooperation in curbing tax evasion.

This book stands as an authoritative reference for those seeking to navigate the complexities of international taxation. It is undoubtedly and inevitably an academic text. Its comprehensive coverage and timely insights make it a valuable addition to the discourse on global tax policy and regulation for academics, policymakers and those with an interest in the area.

Hilesh Chavda is a partner at Spencer West, London