The Economic Impact of Tax Havens on Businesses and Its Home Countries (税金避難地が企業とその母国に与える経済的影響)


Today, tax havens carry an important role in the world economy because its system attracts amounts of capitals in the world. This paper introduces what are tax havens, its structure, and influence in the world economy. In fact, many well-known wealthy companies and individuals are interacted with tax havens. There is a firm relationship among them. Tax havens bring benefits to offshore companies and individuals, and vice versa. They both obtain benefits from each other, which is discussed on this paper. Also, this paper refers tax havens’ profitable mechanism and means how they attract foreign capitals. In addition, this paper provides how individuals make use of tax havens to evade tax obligations on their home countries. Also, tax haven system does not have only positive influences, but has harmful impacts on the world economy. This is considered as a global issue. This paper reveals these harmful components of tax havens other countries, and figure out which elements controversial are. Then the study introduces examples of initiatives against negative effects of tax havens.