Combating tax evasion through tax havens: A comparative analysis between Romania, Switzerland and Cyprus

Abstract

Tax evasion through tax havens poses a significant and multifaceted challenge, impacting economies, fairness, and governance on a global scale. However, this research offers a glimmer of hope, as it scrutinises the phenomenon focusing on Romania, Switzerland, and Cyprus to understand the implications and strategies to mitigate such practices. The study employs a mixed methodology, incorporating a comprehensive literature review, comparative legal and tax analysis, and case studies to explore the intricate dynamics of tax evasion through tax havens. It delves into the economic effects, competitiveness, and state budget impacts, offering a nuanced understanding of these countries' roles within international finance and taxation. Results indicate that differences in tax policies, privacy regulations, and financial secrecy significantly influence the attractiveness of these jurisdictions for tax evasion purposes. The study concludes with actionable strategies to combat tax evasion, emphasising the importance of international cooperation, transparency, and policy reform. This research sheds light on the complex interplay between tax havens and economic policies and provides a foundation for future efforts to enhance fiscal fairness and global financial integrity.