The Withdrawal of Revenue (Taxes) to Low Tax Jurisdictions of EU Countries as a Factor Affecting the Economic Security of the State
The article investigates the impact of low tax jurisdictions certain countries in the European Union on the economic security of the state. The author analyzes the relationship between the tendency to withdraw revenue to low tax jurisdictions and the tasks of ensuring the sovereignty of the state, including fiscal risks of states. Based on the definition of tax jurisdiction as the power under national legislation to impose tax levies through its fiscal authorities, the authors discuss the essence of this concept and its relationship to the tax liabilities of individuals and legal entities. The author examines known examples of capital withdrawals to low tax jurisdictions within the European Union and their impact on the state's economy. The article highlights the phenomenon of offshore as an instrument of unfair tax competition. The author provides different perspectives on the conceptual apparatus of the term definition of offshore, discussing its impact on the international economy and emphasizing the negative aspects of unfair tax competition of individual EU countries. Based on the definition of offshore as territories or countries that establish a preferential tax regime, the author analyzes the privileges available to offshore companies, such as simplified reporting and confidentiality of business owners' data. The negative aspects of unfair tax competition stemming from the use of offshore are discussed in order to identify their potential threats to the economic stability of states. The analysis of offshore practices within the EU complements the context of the discussion of the role of offshore in the overall context of the world economy. This emphasizes the diversity of offshore practices and the impact on global tax strategies and financial policies. The author leads to the conclusion about the direct impact of European offshorization processes on the tax security of the Russian Federation.
Authors
- Linara M. Battalova
- ALEXANDER YU. TSYGANKOV (ORCID: https://orcid.org/0009-0009-1164-3363)
Institutions
- Financial University (RU)
Publication Details
- Journal
- Economic problems and legal practice
- Published
- 2025-03-20
- DOI
- https://doi.org/10.33693/2541-8025-2025-21-1-33-38
- Primary Topic
- Economic and Fiscal Studies
- Type
- article
- Field-Weighted Citation Impact
- 0.00