European Union's Struggle with Tax Havens and Profit Drain

narciz.balasoiu@rei.ase.ro   ABSTRACT: The issue of corporate taxation applied in the jurisdiction in which a company operates has recently received increasing political traction, as tax havens have increasingly drawn attention and also as multinationals have developed colossal turnovers, far above the GDPs of less developed countries. Tax havens deprive of billions of dollars many states that have not established through adequate legislation an assertive fiscal control, generating and fueling social inequities and a high degree of poverty. By funneling money through tax havens to avoid the payment of taxes and fees, multinationals deprive national governments of large sums of money that could be directed to education or health programs. KEYWORDS: tax havens, European Union, tax avoidance, profit shifting