Tax Havens: A Rotting Plague – An In-Depth Examination of Corporate Tax Avoidance Strategies and Their Economic Impact

ABSTRACT

This paper provides a comprehensive examination of tax havens and their adverse impact on global economic stability and fiscal reserves. This paper highlights how multinational corporations exploit regulatory loopholes through the practice of transfer pricing and the notorious practice of Dutch Sandwich with a double Irish to avoid paying taxes and shift profits to low-tax or no-tax jurisdictions. This practise not only results in substantial loss to the revenue stream of the government but also impairs investment meant for public welfares. This paper also includes a case study of Apple Inc and about it utilised tax havens too little to no tax. Moreover, it also includes the steps that have been taken by Organisation of Economic Cooperation and Development and India to curb this plague. This paper also suggests some measure that may be taken by India and other countries to minimise the usage of tax havens and make corporations pay their fair share of taxes do the government. In conclusion, the document calls for a coordinated global effort to increase transparency, reform tax treaties, and enforce stricter regulatory measures, thereby restoring the integrity of the international tax system and promoting equitable economic development.