Tax Havens Need to be “Quarantined”

November 16, 2016 International Tax Cooperation

International tax evasionWASHINGTON D.C. – A leading economist is calling for the US and the UK to make it illegal for taxpayers to deal with tax havens.

On November 15th the Nobel Prize-winning economist Joseph Stiglitz issued a new report calling for tax havens to be treated like terrorist organisations or contagious diseases.

In the report it was claimed that tax havens, and the tax evasion and money laundering facilitated by tax havens, is a global problem.

Further, it was suggested that as two of the world’s leading economies, it is the responsibility of the UK and the USA to take effective measures to stop the negative influence and power of tax havens.

As a means of addressing the impact of tax havens, it was suggested in the report that new legislation be implemented which makes it illegal for a taxpayer in any country to have an account in an offshore tax haven, and, similarly, make it illegal for individuals to be directors, shareholders, or trustees in companies, foundation, or trusts registered in tax haven jurisdictions.

The report also called for an international database of all directors and shareholders of all corporate entities around the world.

In the report Joseph Stiglitz added that current measures aimed at stemming tax evasion and increasing transparency, such as bilateral tax agreements, have not been effective at stemming abuse of international tax havens.

Overall tax havens were described in the report like contagious diseases which need to be put in quarantine, or as terrorist groups.