Lecture by Elisa Casi-Eberhard, NHH Bergen, Norway
So close and yet so far: The ability of mandatory disclosure rules to crack down on offshore tax evasion
Abstract: We study the effect of mandatory disclosure rules on aggressive tax planning arrangements. We focus on the one introduced in 2018 under the Council Directive 2018/288/EU (or DAC6) and study its effect on tax evasion.
We show a reduction of cross-border deposits in EU countries with a strong enforcement but also a relocation of funds to countries with limited intermediary reporting obligation. Finally, we detect an increase of USD 14 billion in cross-border deposits held by residents of countries offering citizenship/residence by investment programs, suggesting the use of these schemes as regulatory arbitrage to circumvent the disclosure mandated under DAC6 (pdf)