Corruption and Tax Havens
Corruption is a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. Government or political corruption occurs when an office-holder or other governmental employee acts in an official capacity for personal gain. Corruption creates the opportunity for increased inequality, reduces productivity, growth, investment and job opportunities.
Degree of corruption = Monopoly + Discretion – Transparency – Morality (Stephan, Constantin (2012), ‘Industrial Health, Safety and Environmental Management’).
Tax havens play an important role in fostering corruption as they reduce or eliminate transparency. Corrupt executives and politicians need the darkness and secrecy tax havens provide to ensure the corruption stays hidden from the masses (the government, people, tax, and legal system).
"You’d be stupid not to try to cut your tax bill and those that don’t are stupid in business"
- Bono: U2