Click on a tax haven to learn more about their risks

What is a tax haven?

A tax haven is a jurisdiction or country that offers individuals and businesses favourable tax laws and regulations, often with low or no taxes on certain types of income or assets. These locations attract individuals and companies seeking to reduce their tax liabilities by taking advantage of the lenient tax policies and financial secrecy offered. Tax havens can facilitate tax avoidance or evasion strategies, as they provide opportunities to shield income and assets from higher tax jurisdictions. However, the use of tax havens is a controversial practice, as it can contribute to global tax imbalances and hinder efforts to combat tax evasion and ensure fair taxation.

What are the paradise papers?

The Paradise Papers refer to a leak of financial documents in 2017 that exposed the offshore activities and tax avoidance strategies of various individuals and companies. These documents, obtained by the German newspaper Süddeutsche Zeitung and shared with the International Consortium of Investigative Journalists (ICIJ), revealed the offshore holdings and financial affairs of politicians, celebrities, corporations, and other entities. The Paradise Papers shed light on the complex webs of offshore accounts, shell companies, and trusts used to minimise tax obligations and maintain financial privacy.

What you need to know about the paradise papers leak

The recent huge leak of financial documents revealing how the ultra-rich are secretly investing large amounts of cash in tax havens is the biggest such leak since the Panama Papers last year.

Here is what we know so far:

• • The leak of documents mainly exposes one leading financial law firm based in Bermuda.
  • The 13.4 million documents shed light on how the super-rich and powerful of the world hide their wealth to avoid paying tax.
  • In the US, Wilbur Ross, commerce secretary in Donald Trump’s administration, has business links with Russian allies of President Vladimir Putin who are under US sanctions.
  • In Canada, Stephen Bronfman, chief fundraiser for Prime Minister Justin Trudeau’s party is linked to offshore schemes that may have cost the nation millions of dollars in taxes.
  • About £10m of Queen Elizabeth II’s private money was invested offshore.
  • Everton Football Club is under investigation the leaks suggest owner Farhad Moshiri’s puchase of almost 50% of Everton was funded as a “gift” by Arsenal shareholder Alisher Usmanov.
  • Appleby, a law firm that helps corporations, financial institutions and high-net-worth individuals set up and register companies in offshore jurisdictions, is at the center of the leak.

Interactive tax havens map shows where the highest risks are

The interactive map above shows where the wealthy are most likely to hide their money. You can learn about each tax haven by clicking on the a country. This map is part of our course Tax Evasion: Failure to Prevent.