Agustín Bénétrix (Trinity College Dublin) at ESM Research Seminar
Automatic for the (tax) people: information sharing and cross-border investment in tax havens
Associate Professor at the Department of Economics, Trinity College Dublin and IM-TCD
Friday, 10 March from 14:00 until 15:30 CET
Please let us know by Wednesday 8th of March COB If you will attend virtually or in person.
The event will take place in our Conference Area, make sure to come 15 minutes before the event allowing for a timely start!
Abstract: This paper examines the impact of international automatic exchange of information (AEOI) treaties on cross-border investments in tax havens. Using a restricted version of the BIS Locational Banking Statistics we find that AEOIs significantly reduced cross-border deposits. A sectoral breakdown assessment reveals that households were the key driving force behind this contraction. Analysing other forms of cross-border investment, we observe that tax havens' portfolio and direct investment assets in non-haven countries fell significantly after AEOI introduction, indicating a reduction of round-tripping investments. However, we also document evidence of households' deposits shifting to non-AEOI haven countries. Moreover, we observe larger FDI positions and deposits by non-bank financial institutions between tax haven countries, suggesting an increased use of shell corporation networks since AEOI introduction.
This is an ESM research seminar. If you would like to attend, please send an email to ESMResearch@esm.europa.eu