Tax havens: An overview

Tax havens have become a major challenge in the globalization era, since they are facilitating the erosion of national tax bases and enabling both legal and illegal economic activities. Despite the international efforts to reduce their power, the inability of criminal policy to effectively combat the prevalence and impact of tax havens remains a critical issue. In this paper, we argue that the failed attempts to combat the phenomenon of tax havens are related to the fact that they constitute a fundamental mechanism of the capitalist system and the unwillingness of states to deal effectively with white collar crime. Future research is needed for anti-criminal decision makers as to form effective and holistic policies.