Offshore deposits and tax policies

Abstract

The study aims to empirically analyze the relationship between Taxes and Offshore Deposits. A major issue in the present-day economic world has been the use of tax havens or formally called ‘Offshore Deposits’ by wealthy individuals and companies to evade tax. The prospect of the following study is to analyze what factors really lead to these deposits and whether reducing top income tax rate would be an effective mean to combat these tax evasions. In this paper, it is argued that in fact, tax rates alone are not a reason and when various countries divided in groups lead so several other significant determinants of tax evasion.