Work

The End of Bank Secrecy? An Evaluation of the G20 Tax Haven Crackdown

Year: 2014

Type: article

Abstract: During the financial crisis, G20 countries compelled tax havens to sign bilateral treaties providing for exchange of bank information. Policymakers have celebrated this global initiative as the end of bank secrecy. Exploiting a unique panel dataset, our study is the first attempt to assess how the treaties affected bank deposits in tax havens. Rather than repatriating funds, our results suggest that tax evaders shifted deposits to havens not covered by a treaty with their home country. The crackdown thus caused a relocation of deposits at the benefit of the least compliant havens. We discuss the policy implications of these findings. (JEL G21, G28, H26, H87, K34)

Source: American Economic Journal Economic Policy

DOI: 10.1257/pol.6.1.65

Authors: Niels Johannesen, Gabriel Zucman

Institutions: University of Copenhagen, London School of Economics and Political Science, University of California, Berkeley

Language: English

Topic: Corporate Taxation and Avoidance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: bronze

Funders: Danmarks Frie Forskningsfond, Economic and Social Research Council