First came the Panama Papers, then the BahamasLeaks, and now it's the Paradise Papers. Journalists continue to shed light on and raise a public outcry over the offshore financial centers that corporations use to reduce their tax bill – something that is still being challenged in court.
A recent study has now uncovered all the world's corporate tax havens and, for the first time, revealed the intermediary countries that companies use to funnel their money into these places.
Published on July 24 in the academic journal Scientific Reports, the paper Uncovering Offshore Financial Centers: Conduits and Sinks in the Global Corporate Ownership Network shows that offshore finance is not the exclusive business of exotic, far-flung places such as the Cayman Islands and Bermuda.
The Netherlands and the United Kingdom also play a crucial – although a heretofore obscure – role in the tax-avoidance game, acting as conduits for corporate profits as they make their way to tax havens.