The OECD estimates that two-thirds ( billion) occurs from tax avoidance and evasion from non-African firms.
The continual avoidance of taxation by international corporations through legal and illegal methods stifles development in countries that greatly need such revenues to operate.
by renting property owned in an offshore jurisdiction) can also be eliminated in this way.
The report's author indicated that this hidden money results in a "huge" lost tax revenue—a "black hole" in the economy—and many countries would become creditors instead of being debtors if the money of their tax evaders would be taxed.
Some tax havens, including some of the ones listed above, do charge income tax as well as other taxes such as capital gains tax, inheritance tax, and so forth.
Criteria distinguishing a taxpayer from a non-taxpayer can include citizenship and residency and source of income.
While incomplete, and with the limitations discussed below, the available statistics nonetheless indicate that offshore banking is a very sizable activity.
The OECD estimated in 2007 that capital held offshore amounted to between trillion and trillion, making up approximately 6–8% of total global investments under management. Department of Treasury estimated that in 2011 the Caribbean Banking Centers, which include Bahamas, Bermuda, Cayman Islands, Netherlands Antilles and Panama, held almost trillion dollars in United States debt. Government Accountability Office (GAO) reported that 83 of the 100 largest U. publicly traded corporations and 63 of the 100 largest contractors for the U. federal government were maintaining subsidiaries in countries generally considered havens for avoiding taxes.
Definitions vary; some definitions focus purely on tax: for example, one widely cited academic paper describes a tax haven as a jurisdiction where particular taxes, such as an inheritance tax or income tax, are levied at a low rate or not at all.