Lesson 12 - Tax

Question 1

4 uses of tax havens

Answer 1

Avoidance + evasion
Hide criminal activity
Anonymity
Cheaper business costs (Deregulation)

Question 2

Tax haven

Answer 2

Subsidiary nation with lower tax regimes

Question 3

Tax haven examples

Answer 3

Ireland (12.5% corp)
British Virgin Islands
Switzerland

Question 4

Tax havens figures

Answer 4

$13 trillion personal wealth
Legal home 2 million corp entities
Legal home 1/2 int. lending banks

Question 5

Transfer Pricing

Answer 5

Company set in haven
Haven buys goods at break even price
No profit in original nation
Haven sells goods above break even
Haven keeps profit + avoids tax

Question 6

Tax haven companies

Answer 6

Owned by anonymous trusts
Branded as Offshore
‘Offshore Finance Centre’ etc

Question 7

Possession of offshore wealth

Answer 7

Amongst richest 10m
Primarily by richest 100,000

Question 8

Corporate tax dodgers

Answer 8

Starbucks - ‘No profit’ 2009-12
Facebook - £4327 in 2014
Amazon - £11.9m from £5.3b sales