Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/182018
Authors: 
Casi, Elisa
Spengel, Christoph
Stage, Barbara
Year of Publication: 
2018
Series/Report no.: 
ZEW Discussion Papers 18-036
Abstract: 
Back in 2013, the Automatic Exchange of Information (AEOI) was endorsed as the prevailing universal solution to fight cross-border tax evasion. In this regard, the OECD launched a global standard for the AEOI, the Common Reporting Standard (CRS). Currently, around 100 jurisdictions have committed to implement it into respective national laws by 2018. In this study, we analyze the impact of the CRS on cross-border tax evasion using a difference-in-difference research design. By considering a period of four years (2014-2017), results suggest that the CRS induced a reduction of 14% in cross-border deposits parked in offshore locations for tax evasion purposes. Moreover, such wealth and related income has not been repatriated but rather a new location to avoid domestic tax obligations has emerged. More specifically, upon the CRS implementation at domestic level, the United States (U.S.), i.e. the only major economy in the world, which so far did not commit to the CRS, seems to emerge as a potentially attractive location for cross-border tax evasion.
Subjects: 
Tax Evasion
Automatic Exchange of Information
Offshore Locations
Cross-Border Deposits
JEL: 
F42
G21
H26
H31
Document Type: 
Working Paper
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