Letter to the DT from the usual suspects:
A recent Organisation for Economic Cooperation and Development report on implementation of its anti-bribery convention was critical of the British Government, which has ultimate and final responsibility for crown dependencies and overseas territories, including a number of tax havens.
Havens can facilitate tax evasion, money laundering and other financial crimes. We estimate that each year they allow some companies to dodge $160 billion in taxes in the developing world – far more than such countries receive in aid.
Note that these are flows, not stocks.
There’s what, a couple of trillion of FDI in those poor countries? More? The existence of that capital there is vastly more important than any tax dodging that people might be doing with the profits being made from it.
Plus, of course, taxing those returns more is going to reduce the inflows, isn’t it? As the absolutely standard economics of taxation tell us of course.