Tax havens as a complex multi-dimensional challenge: Implications for global poverty and international tax competition
DOI:
https://doi.org/10.5281/zenodo.19281855Keywords:
Tax, tax havens, global poverty, international tax competitionAbstract
This study aims to examine the effects of tax havens on global poverty and international tax competition from a holistic perspective. In today’s context of deepening global economic integration, tax havens—characterized by low tax rates, financial secrecy, and flexible regulatory frameworks—are widely preferred by multinational corporations and high-income individuals. However, this situation leads to the erosion of tax bases and a decline in public revenues, particularly in developing countries, thereby constraining the financing of essential public services such as education, healthcare, and infrastructure. In addition, the international tax competition triggered by tax havens compels countries to adopt lower tax rates in order to attract capital, which weakens fiscal sustainability at the global level. The study reveals that tax havens are not merely financial instruments; rather, they constitute a structural problem that exacerbates income inequality and adversely affects development processes. In this context, the study provides a strategic and multidimensional contribution to the tax havens literature.
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