STICHING a list of mega tax havens and then ranking
them is undoubtedly a tough job. But Oxfam has done it by considering parameters
like subsidies, tax rates and cooperation with global boldies working for
tax transparency. And it has prepared a list of 15 worst tax havens. No
prize for guessing the numero uno tax jurisdiction - Bermuda.
Some
of the British dependencies have improved their ranking and thus British
Virgin Islands ranks the last - the 15th. Even Mauritius has improved and
has been ranked 14th. From the top to bottom, The Cayman Islands has been
ranked second; The Netherlands as third and Switzerland continues to reflect
its global popularity as fourth.
The
two Asian jurisdictions which have become key routes for funnelling investments
in the emerging economies are Singapore (5th) and Hong Kong (9th). Ireland
which shot into notoriety afte the Apple case for low corporate tax rate,
occupies the sixth position, followed by private tax-treaty-fame Luxembourg
at 7th position.
While
calling the Report as the 'Race to The Bottom', it has highlighted colourful
tax incentive schemes to magnetise MNEs. For instance, 'Innovation Box'
of The Netherlands is one such scheme which costs as much as USD 1.3 bn
to the revenue kitty and it is over seven per cent of the total income
from corporate tax.
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