Effect of tax havens on international tax competition

With the increase in globalization in the world, capital liberalization has begun, and countries that want to benefit from this situation have made tax reductions in many areas, especially corporate tax, by making arrangements in tax laws to attract international foreign capital to their countries. As a result of the tax competition between countries, tax havens and off-shore financial centers have emerged with no or less taxation. Tax havens have become centers of tax evasion or tax avoidance because they are regions with little or no taxation. Many companies move their headquarters to these regions to pay less taxes. As a result, there is a decrease in the tax revenues of the countries, resulting in deterioration in their budgets. In this study, the effects of tax havens in the world on international tax competition are investigated; The emergence of tax havens, their causes and methods of struggle are examined. By comparing Turkey's tax haven countries with randomly selected OECD member countries, Turkey's position in the phenomenon of tax havens has been researched. In the study, literature review method, one of the qualitative research methods, was used. In order to eliminate the negative effects of the existence of tax havens with research from many sources, measures are taken and studies are carried out under the leadership of international organizations, and sanctions are applied against countries that do not comply with these measures. It has been concluded that Turkey has made some arrangements in its legislation in order not to be exposed to these sanctions and not to be a tax haven country.