Scholarly record

ASSESSMENT OF THE EFFECTIVENESS OF INSTISTUTIONAL ACTIVITIES FOR THE REDUCTION OF TAX HAVENS WITHIN THE EU AND BEYOND

Elzbieta Mirecka

Abstract

Many years of history of tax havens indicate their attractiveness in terms of hiding income and reducing tax burdens. At the same time, it exposes the weakness of governments and various types of institutions and organizations in the scope of limiting the negative impact of tax havens on the financial conditions of the countries from which the capital has migrated. The creation of new legal forms, often of a hybrid nature, is not a magnet only for business entities but also for individuals. Minimum tax burdens, a flexible formula for doing business or protecting property against future creditors are the assets of the oasis in comparison with the conditions of the countries undisclosed to this type of economies. Tax havens are global, they are scattered all over world. The speed of formation of oasis organizational and financial innovations causes low effectiveness of actions taken to limit them. It also favors this maintaining the sovereignty of tax policy. OECD and EU activities are very necessary, though they raise a lot of controversy about their effectiveness. There is a diversification of activities in depending on the location and nature of the tax oasis. Activities conducted by OECD are more efficient by the one conducted by the European Union. Paradox is existence tax havens within the EU in the countries where the idea of integration was created and from which come the leading activists of the Union. One can presume that the causes should be seen in personal-political connections and reluctance to weaken the economic condition of these countries.

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