Analysis of the Presence in Tax Havens of the Largest Accounting Firms

Author:Mihai-Bogdan AFRĂSINEI, Ph. D. Student; Univ. Prof. Iuliana Eugenia GEORGESCU, Ph. D.

JEL:F23, F38, F53, M41, M48

DOI:

Keywords:tax havens, international tax optimization, accounting companies, the Big 4

Abstract:
The use of tax havens amongst big multinational companies has reached extremely high levels. Within the context of international tax optimization, there are few multinational companies which do not have at least one subsidiary or one related company in tax havens. By using complex tax optimization schemes through tax havens, companies succeed in lowering their tax liabilities. The literature emphasizes the fact that the largest banks in the world, the major law firms, as well as the Big 4 accounting firms have a very important role in the functioning of tax havens. Starting from this observation, in this exploratory study the authors propose an analysis of the presence in tax havens jurisdictions of the Big 4 accounting firms. In order to reach the proposed objectives, the authors analyzed the location of the offices where the Big 4 accounting firms operate. Results show that the accounting companies in the Big 4 tend to operate in tax havens through a disproportionate number of offices compared to the number of inhabitants by taking into consideration the situation of the other states. Thus, authors notice that Big 4 accounting firms operate in locations with significant financial activity, which may lead to the conclusion that they support the offshore economy.\r\n

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