Tax Havens

Money laundering is the process of transforming the profits of crime and corruption into ostensibly ‘legitimate’ assets, and the hiding of income/wealth from Governments to avoid taxation. Placing ‘dirty’ money in a service company, where it is layered with legitimate income and then integrated into the flow of money, is a common form of money…

Tax evasion or tax crime occurs when people abuse the tax and superannuation systems through intentional and dishonest behaviour with the aim of obtaining a financial benefit. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability and includes dishonest tax reporting, such…

Many tax haven banks offer attractive rates of interest to attract capital into the developing countries financial system.  As developing countries are higher risk than developed countries, they must pay higher rates of interest to attract foreign investment. An example, of those higher risks is the 2012–2013 Cypriot financial crisis. The crisis was a result…

Structured financial entities are established by financial institutions (banks and companies) to sell their debt securities to investors. This commonly involves the securitising of mortgages, credit card receivables, car loans, aircraft refinancing, etc.  The issuers receive cheaper and more efficient funding combined with greater balance sheet flexibility, whilst the investors receive fixed income with a…