tax haven

There is no evidence that banks are shifting profits to Luxembourg to dodge tax, one of the authors of a recent controversial report by the EU Tax Observatory has said. Yet if this is so, why does the think-tank label Luxembourg a “tax haven” for banks? We asked one of the report authors to explain.

“Why Luxembourg is still a tax haven” was the headline in Monday’s Luxemburger Wort, the country’s leading daily. The evidence for this statement was a report from the EU Tax Observatory think tank which identified the Grand Duchy and 16 other jurisdictions as helping multinational banks dodge taxes.