How Tax Havens Lure Corporate Profits Away

In this episode, Lucas and Luna unpack the mechanics of corporate tax havens. They focus on one concrete case: Bermuda, where more than 1,000 U.S. companies maintain a mailing address despite having few physical operations there. The hosts explain how profit shifting works through intercompany loans and transfer pricing, then zoom in on the OECD's global minimum tax deal agreed in 2021, which imposes a 15% floor on corporate income taxes. They highlight Ireland's effective rate falling from 12.5% to 15% and the U.S. Treasury's estimate that profit shifting costs the U.S. $60 billion annually. Lucas and Luna also explore the role of the BEPS project and the new 'undertaxed payments rule' that gives countries the power to tax income from low-tax jurisdictions. The episode ends with a question about whether the global minimum tax will truly end the race to the bottom or just create new loopholes. #TaxHavens #CorporateTax #ProfitShifting #Bermuda #OECD #BEPS #GlobalMinimumTax #Ireland #TransferPricing #TaxEvasion #FiscalPolicy #Economics #Business #TaxReform #InternationalTax #BaseErosion #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo