Tax exile

Tax avoidance refers to the relocation of sources of income, place of business, residence or domicile in other states or areas for tax reasons. Destination countries are often so-called tax havens ( low-tax country ). The term tax evasion is used for both cases of illegal tax evasion as well as legal, but by some as morally questionable respected tax avoidance. The term also acts as a political slogan.

Demarcation

In particular, capital gains are easy to relocate and therefore often the subject of tax evasion. Such capital flight, however, is often not (only ) tax- motivated but also for other reasons such as concerns about a devaluation of its currency.

A relocation of businesses held for taxation purposes, if competitiveness is affected by the tax burden. Transnational corporations shift profits in subsidiaries (and let it letterbox companies) in countries with low tax rates. Etc. With regulations on additional taxation, transfer pricing try high-tax countries to handle this.

Under German tax law

The German tax law is linked to the taxation of a person at the ( place of residence or registered office) or of natural persons at their usual place of residence and for corporations at the place of business. Unlike the U.S., the Federal Republic of Germany, except for some special cases, no right to tax on its citizens because of their nationality, regardless of their place of residence or habitual residence. A natural person has a domicile or habitual residence in Germany, then it is basically on their total income taxable in Germany (unlimited tax liability ). To avoid or mitigate double taxation due to concurrent taxing rights of various states, there are double taxation agreements.

A limited tax liability may also arise when an individual holds true not domiciled or habitually resident in a country, but generates income in this country, such as the location and rented abroad house; Dividends from foreign companies ( withholding tax ). Then she's in the State in which the source of income is, (and only ) source of income subject to tax on the local, if it appears from a double taxation treaty otherwise.

Some states are trying a tax evasion more difficult, by (at least for a certain time still) secure the right of taxation for a residence or place of business moving abroad, Germany, for example, through the Foreign Tax Act ( Foreign Tax Act ).

Scope

2012 results in a study of the organization Tax Justice Network ( Network for Tax Justice ), which lost the home states of up to 280 billion in income taxes by tax evasion. Financial assets of 21 bis $ 32 trillion was invested in tax havens.

In the so-called offshore leaks reported in April 2013 worldwide media from a record with 130,000 names of people who should have invested their assets in tax havens.

Tax Evasion and Development Policy

In 2009, Luxembourg NGOs that are funded in substantial part by the Government of Luxembourg, published critical reports. It was an attempt to show the flow of funds between tax havens and developing countries. After the policy had reacted strongly, it has distanced itself from the reports.