Vincent Bouvatier, Gunther Capelle-Blancard & Anne-Laure Delatte , 2017.
"Banks Defy Gravity in Tax Havens,"
CEPII Working Paper 2017- 16 , September 2017 , CEPII.
This paper provides the first quantitative assessment of the contribution of global banks in intermediating tax evasion. Applying gravity equations on a unique regulatory dataset based on comprehensive individual country-by-country reporting from all the Systemically Important Banks the European Union, we find that: 1) Tax havens generate a threefold extra presence of foreign banks; 2) The favorite destinations of tax evasion intermediated by European banks are Luxembourg and Monaco 3) British and German banks display the most aggressive strategies in tax havens; 4) New transparency requirements imposed in 2015 have not changed European banks commercial presence in tax havens; 5) Banks intermediate EUROS 550 billion of offshore deposits, that is 5% of their origin countries' GDP.
Tax evasion ; International banking ; Tax havens ; Country-by-country reporting