Recently, the Tax Justice Network(TJN), an independent organization dealing with the analysis of tax and regulation, released their "Financial Secrecy Index," which ranks the world's most secretive tax havens.
The level of financial secrecy provided by tax havens, which TJN argues is a key component of jurisdictions competing to attract financial flows, is ranked by 12 qualitative measures (opacity score) such as laws, regulations and international treaties as well as quantitative measures (weighted score) which takes into account the amount of cross-border financial services activity of a jurisdiction, or its role in the global financial services to foreigners.
In the report, the opacity score and the weighted score are combined to calculate the Financial Secrecy Index Value, from which countries are ranked. For a full methodology and explanation of what the numbers mean, click here. For larger countries like the US and UK, individual states or municipalities were singled out for comparison; which are the areas within the country to offer the most secretive tax environments for individuals and corporations.
So, what are the world's most secretive tax havens? Click ahead to find out!
By Paul Toscano
Posted 2 Nov 2009