The paper deals primarily with the use of transfer pricing and tax havens by multinational businesses to defer, avoid, or (depending on whether one views manipulation of transfer prices as involving avoidance or evasion) evade taxes levied by the country of residence. Thus it pays relatively little attention to the use of tax havens by wealthy individuals to evade taxes in their countries of residence. Nor does it consider preferential tax treatment for selected non-financial sectors, perhaps limited to foreign investors, in order to attract real (non-financial) activities. Such countries are not ordinarily called tax havens, and these policies are best covered by a paper on tax incentives. Finally, it does not consider headquarters havens, except in passing, in the brief discussion of corporate inversions.
Working Paper Number 04-45.