Financial sector – banks use tax havens – economy

Many European banks make a significant portion of their profits in tax havens, according to a new study. The European Tax Policy Observatory found in a study of 36 large financial institutions that they post an average of 20 billion euros in profits per year in tax havens. According to the study, this corresponds to 14% of total profit before taxes. There are indications that institutes such as Deutsche Bank or Commerzbank are moving funds to tax havens in order to pay less taxes, the researchers say. They classified 17 regions like the Bahamas, but also EU countries like Ireland, Malta and Luxembourg as oases due to their low tax rates.

The European Tax Policy Observatory is co-funded by the EU and is located at the Paris School of Economics.

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