Ref. Ares(2018)5553212 - 30/10/2018 Tax Evasion and Avoidance through Financial Engineering The State of Play in Europe Document Details Work package WP1 Lead Beneficiary The City University Deliverable ID D.1.7 Date 31 October 2018 Submission 30 October 2018 Dissemination Level PU – Public Version 1.0 Author(s) Anastasia Nesvetailova Andrei Guter-Sandu City, University of London City, University of London
[email protected] [email protected] Ronen Palan Yuval Millo City, University of London Warwick Business School
[email protected] [email protected] Acknowledgements The project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 727145. Tax evasion and avoidance through financial Engineering: The state of play in Europe Anastasia Nesvetailova*, Andrei Guter-Sandu, Ronen Palan*** and Yuval Milo****) * Professor of International Political Economy, City, University of London ** Fellow, CITYPERC, City, University of London *** Professor of International Political Economy, City, University of London **** Professor of Accounting, Warwick Business School Acknowledgements The project has received funding from the European Union’s Horizon 2020 research and innovation program under grant agreement No 727145. We thank Professor Thomas Rixen and Dr. Petr Jansky for their comments on an earlier draft. 1 Contents 1. Introduction .............................................................................. 4 1.1. Methodology adopted by this WP1 study ................................... 5 1.2. Policy recommendations ......................................................... 8 1.3. Structure of this report .......................................................... 9 2. Financial innovation and tax abuse: Theory and Evidence .............. 10 3. The landscape of derivatives ...................................................... 15 3.1. A Brief History of Financial Derivatives ..................................