Taxes are one of the main components of any country governed by the rule of law and social welfare. Taxes are also one of the main sources of a country's funding, so the revenue generated from taxes is used to provide public goods that are accessible to everyone. As many taxpayers do not want to pay more taxes than necessary, they may look for ways to reduce their tax liabilities. They can do this through tax optimization, which is perfectly legal. Some taxpayers also take advantage of the various benefits offered by tax havens, which are mainly characterized by favorable tax conditions, such as lower or even zero tax rates, more taxpayer-friendly legislation, a greater degree of anonymity, etc. The mere transfer of money or operation of a business in a tax haven is not necessarily illegal, but it only becomes problematic when individuals start to exploit tax havens to commit criminal offences, such as tax evasion and money laundering, among others. Tax havens can be a haven for tax evasion due to their less binding and thus more taxpayer-friendly tax legislation. Since money laundering can be carried out on any illegally acquired assets, including assets acquired through the crime of tax evasion, the money obtained in this way is »dirty« and money launderers may again turn to tax havens for certain benefits. In the context of this Master's thesis, I will therefore present the role of tax havens in tax evasion and money laundering.
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