Netherlands the number 1 'sluice guard' for tax evading multinationals: study
The Netherlands is the number one choice in the world for multinationals to funnel money into tax havens, according to a study done by researchers at the University of Amsterdam. The researchers concluded that 23 percent of capital flows through the Netherlands go towards tax havens, ANP reports.
Britain comes in second place with 14 percent, followed by Switzerland with 6 percent, Singapore with 2 percent and Ireland with 1 percent. Together these five countries account for nearly half of the money globally funneled towards tax havens.
According to the researchers, these five countries fulfill the role of 'sluice guard' because of their good reputation, political stability, well-developed constitutional state and numerous tax treaties with other countries.
The researchers also identified 24 tax havens, including prominent places like Luxembourg, the British Virgin Islands, Bermuda, Jersey and the Cayman Islands. Multinationals use letterbox companies in these tax havens in an effort to pay as little tax as possible.