Tax havens and financial markets

Abstract

This thesis is about some of the effects and implications that tax havens have on our financial markets. It focuses on giving the reader a better understanding of the consequences that tax havens impose to our financial markets using the financial crisis that started in 2007 as an example. The first chapter has a brief introduction that lays the foundation of the thesis. The second chapter defines and explains many different types of tax havens that exist worldwide. The third part considers the corporate structures found in tax havens and their respective use. The fourth chapter discusses the link between the financial markets and tax havens, and also explains the different structured derivatives used in tax havens. The final chapter uses the financial crisis to illustrate some of the effects that are created by tax havens. This chapter also discusses the future of tax havens, provides a conclusion of the thesis and some suggestions for preventing a possible future where tax havens continue to pose as a threat and create uncertainties in our financial systems.