Publikationen des DIW Berlin

Kontakt:

Diskussionspapiere/ Discussion Papers

1711 Dirty Money Coming Home: Capital Flows into and out of Tax Havens Lukas Menkhoff, Jakob Miethe 2017 39, 16 S.

Download kostenlos Beitrag | PDF  0.84 MB

Abstract:

We use newly released bilateral locational banking statistics of the Bank for International Settlements to show the full circle of international tax evasion via tax havens. Surprisingly, white-washed money from tax havens is also withdrawn from banks in non-havens if an information treaty is signed between both countries. There are time lags and other economically plausible structures in these reactions. Interestingly, the effect of additional information-uponrequest treaties seems to fade out over time. By contrast, new treaties based on automatic information exchange again show bite; this puzzling evidence is best explained by dirty money changing its packaging.

JEL-Classification:

H26;F38

Keywords:

Tax evasion, international capital flows, international information exchange treaties, bank deposits