Banks Defy Gravity in Tax Havens

Anne-Laure Delatte, Gunther Capelle-Blancard and Vincent Bouvatier

No 12222, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Using country-by-country reports from the Systemically Important Banks in the European Union, we measure "abnormal'' banking activity in tax havens (TH). Our assessment is based on a gravity model used to predict the expected international turnover of EU banks worldwide. We find that: 1) banks turnover in TH represents on average twice the gravity predictions; 2) the abnormal turnover of EU banks represents 1.46\% of GDP in TH and varies between 16\% of GDP and zero; 3) there is a large heterogeneity across TH with Hong Kong, Luxembourg and Singapore concentrating the bulk of the abnormal turnover; 4) we observe a decline and a concentration of abnormal turnover since the reporting requirement has been introduced in the EU.

Keywords: Country-by-country reporting; Tax evasion; International banking; Tax havens (search for similar items in EconPapers)
JEL-codes: F23 G21 H22 H32 (search for similar items in EconPapers)
Date: 2018-09
New Economics Papers: this item is included in nep-ban, nep-eec, nep-pbe and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Banks Defy Gravity in Tax Havens (2017)
Working Paper: Banks Defy Gravity in Tax Havens (2017)
Working Paper: Banks Defy Gravity in Tax Havens (2017)
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