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The economy of tax havens - Pros and cons

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  1. The harmful consequences of tax havens
  2. Positive aspects of tax havens

Tax evasion and tax avoidance that are more easily achieved thanks to the internationalisation of the economy are also often considered as plagues against the creation of a fair international economic environment, preventing countries from accessing essential financial resources for their development and/or growth. The number of tax havens has grown dramatically since the 1970's, most of the governments being unable or unwilling to go against this tendency (Escario Diaz-Berrio, 2011). Nonetheless, this situation seems to be about to change, as an increasing number of measures are taken worldwide in order to take those havens down and get that money back to their home nations. But what makes those low-tax countries, so appreciated by companies and some individuals, the target of other countries in the world? Ultimately, are those arguments reasonable enough to justify why a lot of countries try to eradicate such practices?

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