Are international deposits tax-driven?

Harry Huizinga and Gaëtan Nicodème

No 152, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: This paper investigates the impact of tax policy on international depositing. Non-bank international deposits are shown to be positively related to interest income and wealth taxes and to the presence of domestic bank interest reporting. This suggests that international deposits are in part intended to facilitate tax evasion. The tax sensitivity of international deposits is estimated to be higher in 1999 than before. At present, only part of international interest flow are covered by either non-resident interest withholding taxes or international exchange of information. This incomplete coverage may be a reason that these policies currently appear to have little impact on international depositing.The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They should not be attributed to the European Commission.

Keywords: tax policy; international depositing; tax evasion and sensitivity; international interest flow (search for similar items in EconPapers)
Pages: 52 pages
Date: 2001-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (21)

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Related works:
Journal Article: Are international deposits tax-driven (2004)
Working Paper: Are international deposits tax-driven? (2004)
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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0152

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