Hide-and-Seek: Can Tax Treaties reveal Offshore Wealth?

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Daniel Jeong-Dae Lee


In response to offshore tax evasion, governments in many tax-heaven countries have introduced new tax treaties to facilitate the exchange of financial account information between jurisdictions, including traditional tax havens. This research article aims examining whether these treaties have had a material impact on offshore evasion. Based on panel regression analysis, cross-border deposits in traditional haven jurisdictions, taken as a proxy for offshore evasion in the literature, have declined substantially. However, these offshore assets are being relocated to few non-compliant tax havens and moreover, “non-haven” offshore financial centres, most notably the United States, which has yet to commit to reciprocal and automatic exchange of information and establish a public register of ultimate beneficial ownership.

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Author Biography

Daniel Jeong-Dae Lee

Economic Affair Officer, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and Doctoral Student, Doctoral Program in Economics, Graduate School of Development Economics, National Institute of Development Administration (NIDA), Serithai Road, Klong-Chan, Bangkapi, Bangkok 10240, Thailand


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