Mass., Harvard Univ., Dep. of Economics, Diss.--Cambridge, 1990. / Kopie, ersch. im Verl. UMI, Ann Arbor, Mich. - Enth. 3 Beitr. Literaturverz. S. 141 ff.

This paper examines the relevance of tax havens for China by determining which tax havens are important for China and to what extent. Furthermore, the motives for Chinese tax haven activity are analysed and compared to the motives of Western companies that primarily use tax havens for the purpose of tax arbitrage. An analysis of two listed Chinese companies, a private and a state-owned entity (SOE), exemplifies how Chinese businesses incorporate tax havens into their business structure and discusses differences between the motives of private and state-owned companies. The magnitude of tax havens found in the business structures emphasise the importance of tax havens for Chinese companies, irrespective of whether the company is an SOE or private, or conducts its business in China or internationally. While the reasons why the state-influenced company incorporated tax havens into their structure seemed to be related to legitimate business motives, the motives behind the structure of the private company seemed questionable. The assessment furthermore confirms that China’s weak institutional framework and restricting business environment is a major push factor and gives companies plenty of incentive to go offshore. / Die Relevanz von Steueroasen für China

Since the mid-1990s, countries offering tax systems that facilitate international tax avoidance and evasion have been facing growing political pressure to comply with the internationally agreed standards of exchange of tax information. Using data of German investments in tax havens, we find evidence that the conclusion of a bilateral tax information exchange agreement (TIEA) is associated with fewer operations in tax havens and the number of German affiliates has on average decreased by 46% compared to a control group. This suggests that firms invest in tax havens not only for their low tax rates but also for the secrecy they offer. (authors' abstract) / Series: WU International Taxation Research Paper Series

The pressure on tax haven countries to engage in tax information exchange shows first effects on capital markets. Empirical research suggests that investors do react to information exchange and partially withdraw from previous secrecy jurisdictions that open up to information exchange. While some of the economic literature emphasizes possible positive effects of tax havens, the present paper argues that proponents of positive effects may have started from questionable premises, in particular when it comes to the effects that tax havens have for emerging markets like China and India. (authors' abstract) / Series: WU International Taxation Research Paper Series