The Impact of the Foreign Financial Accounts Reporting Acts on the Capital Flows from Tax Havens

2018 ◽  
Vol 26 (4) ◽  
pp. 465-495
Author(s):  
Cheol-Won Yang ◽  
Hong-Jong Cho
Keyword(s):  
Regression Analysis ◽  
First Amendment ◽  
Capital Flows ◽  
Tax Evasion ◽  
Panel Regression ◽  
Stock Trading ◽  
Tax Havens ◽  
Tax Haven ◽  
Illegal Acts ◽  
The Impact

The Foreign Financial Accounts Reporting was introduced for the purpose of preventing tax evasion and illegal acts through foreign financial accounts of Koreans. On December 27, 2010, it was newly established in “The Law for the Coordination of International Tax Affairs” and received its first report in June 2011, the following year. The system was further strengthened after three revisions. The first amendment was enforced from January 2012 after it took place on December 31, 2011. Thereafter, revisions and enforcement proceeded simultaneously in January 2013 and January 2014. This paper evaluates the performance of the system for four years from 2011 to 2014. In addition, we examined the effect of institutional implementation and changes on tax haven investors through empirical analysis using Korean stock market data. Assuming that Koreans disguised as foreigners participate in Korean stock trading through an anonymity of tax haven, this system will work to shrink the flow of capital from tax haven investors to other countries. Panel regression analysis using capital flows by country found that the transaction activity of tax havens decreased as compared to other countries after introducing and strengthening the acts.

The OECD's Harmful Tax Competition Initiative and the Tax Havens: From Bombshell to Damp Squib

2008 ◽  
Vol 8 (1) ◽  
pp. 1850128 ◽  
Author(s):  
Robert T. Kudrle
Keyword(s):  
Tax Evasion ◽  
Information Exchange ◽  
Tax Competition ◽  
Personal Income ◽  
Cayman Islands ◽  
Tax Havens ◽  
Bank Secrecy ◽  
Automatic Information ◽  
Tax Haven ◽  
The Impact

The OECD's Harmful Tax Competition of 1998 departed in both tone and substance from almost anything the organization had published before. The roots of the associated project lie mainly in EU concerns that certain forms of intra-union competition were eroding both the corporate and personal income tax bases of member states. But it appeared impossible to deal with those problems unless policies were also changed in the 40 or so jurisdictions know as “tax havens.” HTC threatened sanctions against the tax havens if they failed to collect and share information upon request about individuals and corporations attempting to evade or avoid income taxes. HTC also set criteria for the legitimacy of claims about corporate location. A firm could claim location in a tax haven only if it had “substantial” activity there. The report created a furor among the tax havens, which complained loudly that they were facing a new form of colonial control by being held accountable for standards they had no role in setting. Over the next several years the corporate element of the project disappeared, and the style of the OECD's approach shifted from confrontation to cooperation. HTC was strongly supported by the Clinton Administration, and summaries of the project's development often stress how much change came with the election of George W. Bush. A careful look at OECD reports, however, reveals that much of the shift in direction occurred before the outcome of the U.S. election in 2000 had been determined. The revised focus on bank secrecy did yield results. Virtually all of the tax havens had acceded to the revised OECD demands for transparency and information exchange by 2004. This article looks at the data on tax haven liabilities to gauge the impact of the project on tax evasion. It employs the ARIMA technique to investigate both tax haven activity as a whole and the particularly important case of the Cayman Islands. No significant impact can be found probably because investment in the havens remains very easy to disguise and very difficult to detect. This suggests that an effective attack on personal income evasion will require more than the OECD demanded. Automatic information-sharing on the ownership based on an internationally consistent set of identifying numbers over a range of financial instruments holds greater promise for a significant decline in the use of the havens for tax evasion.

scholarly journals The Impact of B Corp Certification on Growth

2021 ◽  
Vol 13 (13) ◽  
pp. 7191
Author(s):  
Valerie Paelman ◽  
Philippe Van Cauwenberge ◽  
Heidi Vander Bauwhede
Keyword(s):  
Regression Analysis ◽  
Propensity Score ◽  
Panel Regression ◽  
Medium Term ◽  
Difference In Differences ◽  
Dual Purpose ◽  
Full Effect ◽  
The Impact ◽  
Positive Effect ◽  
Over Time

We empirically test whether B Corp certification affects the short- and medium-term growth rates of sustainable enterprises. These businesses are growing in popularity and prevalence but, due to their hybrid nature, often suffer from external credibility issues and competing internal logics. Because of the rigorous and time-involving audit procedure, B Corp certification potentially sends a credible signal about the sustainable nature of the enterprise to its stakeholders. In addition, the B Corp label could help to straighten out internal tensions and align the company towards its dual purpose. Hence, B Corp certification could contribute to company success. We observe 129 firms that were certified between 2013 and 2018 over a period between six years prior and five years post-certification. Using propensity score matching, we identify 129 non-certified matching companies. On this sample, we conduct a difference-in-differences panel regression analysis to investigate the effect of certification. Our dataset allows us to study how the effects of B Corp certification evolve over time, which was previously untested. Our study documents a positive effect of B Corp certification on turnover growth and also that this effect increases with the time since certification, implying that certification requires some time for its full effect to become apparent.

scholarly journals Application of the neutrosophic system to tax havens with a criminal approach

2020 ◽  
pp. 91-106
Author(s):  
Luis Andrés Crespo Berti ◽  
Keyword(s):  
Tax Evasion ◽  
Social Protection ◽  
Evaluation Methodology ◽  
Tax Havens ◽  
Financial Investment ◽  
Bank Secrecy ◽  
Illegal Acts ◽  
State Taxes ◽  
The One

The investigation questions transparency (legitimacy) on the one hand and tax evasion (illegality) at tax haven on the other, so this paper the highlights importance of tax havens, either to the detriment of economies suffering from significant capital flight or to the benefit of jurisdictions declared as paradises, whose economy had been favored by the inflow of capital and investment Foreign. Tax havens are mechanisms of defense of wealthy taxpayers who seek to escape with their wealth from state taxes with progressive tax systems for the financing of social protection, education, and security of their population. Much of the study had to be based on the analysis of the information collected to clarify its importance with the support of neutrosophic numbers for the determination of fuzzy sets for a better understanding of the phenomenon under study inserted in tax havens. Besides, the heuristic evaluation methodology was used, as a form of financial investment with neutrosophic representation, since it allowed the search for qualitative results that helped to emphasize investment problems in those States, territories or jurisdictions that do not have taxation, profits, or apply it at very low rates, with serious limitations in the exchange of information (bank secrecy) and a marked absence of transparency. As the main conclusion, it was argued that governments should continue their transparency campaigns to prevent the continued use of money of public origin as a consequence of illegal acts, without affecting the sovereignty of each country.

scholarly journals Tourism In Belize

2019 ◽  
Vol 2019 (267) ◽  
Author(s):  
Julian Chow
Keyword(s):  
Regression Analysis ◽  
Well Being ◽  
Panel Regression ◽  
Master Plan ◽  
Structural Reforms ◽  
Tourism Sector ◽  
The Government ◽  
The Impact ◽  
Double Digit ◽  
Economic Well Being

Belize’s tourism sector has witnessed impressive growth in recent years with overnight tourist arrivals registering double digit annual growth rates since 2016. To guide the development of the tourism sector from 2012 to 2030, the government endorsed a National Sustainable Tourism Master Plan in 2011, setting various initiatives and targets for the immediate and medium terms. Using a panel regression analysis on twelve Caribbean countries, this paper finds that accelerating structural reforms, fortifying governance frameworks, reducing crime, and mitigating the impact of natural disasters will help sustain tourism growth in Belize and contribute to economic well-being. This is in addition to tackling infrastructure bottlenecks and mitigating concerns relating to the “shared economy”.

scholarly journals Role of Tax Havens in the Tax Revenue Development and Its Reflection on the Public Revenues of the Developing Countries: An Empirical Study in Iraq (2004–2014)

2017 ◽  
Vol 8 (2) ◽  
pp. 289-299
Author(s):  
Bushra Fadhil Khudhair Al-taie ◽  
Hakeem Hammood Flayyih ◽  
Hassnain Raghib Talab ◽  
Noor Abbas Hussein
Keyword(s):  
Tax Revenue ◽  
Socialist Economy ◽  
State Budget ◽  
Tax Havens ◽  
The Public ◽  
Tax Haven ◽  
Public Revenue ◽  
The Impact ◽  
Public Revenues

Abstract The aim of this study is to investigate the role of tax haven on tax revenue development and its reflection on public revenue in Iraq between 2004 and 2014. A review of tax haven literature revealed that there are different types of tax havens, categorizations, characteristics, effects of tax havens, socio-economic consequence and reaction to tax haven that requires analysis. An empirical analysis is done in the public revenue of Iraq from 2004 to 2014. Descriptive statistics and evidentiary are employed as the analysis techniques. It is revealed that the importance of structure analysis of public revenues is connected with tax haven because the basic foundation for the State budget. Also, the growth rates of tax revenue for the period beyond the year 2003 which saw the Iraq regime change and more open to the world and draws from a socialist economy to a market economy, as well as the effect of the tax was havens with the direct tax income withholding tax, as well as the impact of tax revenue in the Public State revenues. Withthe analytical nature of the study reported in this paper, there is still an opportunity for further work on larger populations to confirm the generalizability of the findings.

scholarly journals The Impact of ICT and FDI as Drivers to Economic Growth In ASEAN-8 Countries: A Panel Regression Analysis

2021 ◽  
Vol 9 ◽  
pp. 91-98
Author(s):  
Noraina Mazuin Sapuan ◽  
Mohammad Rahmdzey Roly
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Regression Analysis ◽  
Panel Regression ◽  
Information And Communication ◽  
Asean Countries ◽  
Using Data ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

Over the last few years, information and communication technology (ICT) has become a key catalyst for economic growth. The durability of this technology is demonstrated by the rapid proliferation of the Internet, mobile phones and cellular networks across the globe. However, among economic scholars, the question of exactly how the spread of ICT affects economic development and FDI, especially in ASEAN countries with differences in levels of income, remains unanswered. The aim of this study was essentially to explore the relationship between ICT dissemination, FDI and economic growth in ASEAN-8 countries. By using data from 2003 to 2017, the panel regression analysis was used to evaluate these relationships. The results showed that the dissemination of ICT and FDI are important and they have a positive effect on the ASEAN-8 countries’ economic development.

Countering Harmful Tax Practices

2020 ◽  
pp. 49-65
Author(s):  
Lukas Hakelberg
Keyword(s):  
Tax Evasion ◽  
Financial Stability ◽  
Tax Avoidance ◽  
Clinton Administration ◽  
The United States ◽  
Business Associations ◽  
Perceived Fairness ◽  
Tax Havens ◽  
The Us ◽  
The Impact

This chapter shows that the Clinton administration promoted an international campaign against underregulated financial centers. It did so because it was concerned about the impact of tax havens on the perceived fairness of the US tax system, international financial stability, and the US sanctions regime. The Organisation for Economic Co-operation and Development (OECD), however, made the strategic mistake to tackle tax evasion by individuals and tax avoidance by multinationals in a single project, creating opposition from business associations in the United States and elsewhere. Instead of credibly linking noncompliance with OECD recommendations to economic sanctions, the Clinton administration thus accepted the severe dilution of the harmful tax competition initiative's anti-avoidance elements even before the Bush administration took office in 2001. A nested comparison of two unilateral tax initiatives moreover reveals that the Clinton administration generally failed to pass regulations curbing tax avoidance but succeeded in passing regulations against tax evasion.

scholarly journals Effect of Climate Change on Maize Productivity: Panel Data Analysis

2020 ◽  
pp. 41-45
Author(s):  
Parthasarathi Gurusamy ◽  
Balasubramanian Rudrasamy
Keyword(s):  
Regression Analysis ◽  
Panel Data ◽  
Climate Variability ◽  
Tamil Nadu ◽  
Crop Production ◽  
Panel Data Analysis ◽  
Panel Regression ◽  
Maize Crop ◽  
North East ◽  
The Impact

Aim: The maize is widely grown all parts of the world and it is consumed by all people. This paper studies the impact of climate variability on yield of maize crop in Tamil Nadu using Panel regression analysis.      Study Design: Rainfall (max and min), Temperature (max and min) and yield details were collected from the Indian Meteorological Department and crop production reports respectively used for analysis.  Place and Duration: Tamil Nadu, India. Methodology: Panel data model was used to estimate crop production functions. Results and Conclusion: The study focused on the impact of climate variability on yield of maize crop in Tamil Nadu using Panel regression analysis. The high rainfall leads to The effect of NEM rainfall on maize yield is dependent on the level of NEM temperature and vice-versa. This is probably because of the fact that in most of the districts in Tamil Nadu, maize is grown as a rainfed crop in north-east monsoon season with lower temperature and hence increase in temperature together with good amount of rainfall would lead to higher yield of maize.

scholarly journals The Impact of ICT Exports on The Economic Growth of The BRICS Countries

2020 ◽  
Vol 9 (1) ◽  
pp. 1183-1185
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Information And Communications Technology ◽  
Panel Regression ◽  
Communications Technology ◽  
Goods And Services ◽  
Brics Countries ◽  
Essential Tool ◽  
The Impact

Information and Communications Technology (ICT) is regarded as an essential tool for enhancing the productivity and efficiency of an economy. The increasing dependence and expanding demand for ICT products has led to a momentum of their trade worldwide. This paper is an attempt to look at a relatively less explored area of ICT, that is, the export of ICT goods and services. The paper aims at exploring how the exports of ICT goods and services determine the economic growth of the BRICS countries using panel regression analysis.

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