Paper Contents
Abstract
This paper explores the influence of tax havens on global business operations, examining how these jurisdictions facilitate tax avoidance and impact corporate strategies. Tax havens, characterized by low or zero tax rates and minimal regulatory oversight, attract multinational corporations seeking to optimize their tax liabilities. This phenomenon raises significant questions about equity, transparency, and the integrity of the global financial system. By analyzing case studies of prominent companies that have leveraged tax havens, the paper highlights the mechanisms employed, such as transfer pricing and profit shifting. Furthermore, it discusses the implications for domestic economies, including lost tax revenues and increased inequality. The study also evaluates the responses from governments and international organizations aimed at curbing the adverse effects of tax havens, such as the Base Erosion and Profit Shifting (BEPS) initiative by the OECD. Ultimately, this paper underscores the need for comprehensive reforms to ensure fair taxation and accountability in global business operations.
Copyright
Copyright © 2024 Ruhaan Nagpal. This is an open access article distributed under the Creative Commons Attribution License.
