Tax Havens
Review of Nicholas Shaxson, Treasure Islands: Tax Havens and the Men Who Stole the World (Vintage, 2011). Of the books I read over my Christmas break, one made me cry (Jeanette Winterson’s Why Be Happy When You Could Be Normal? ) and one made me angry. Nicholas Shaxson takes the dry and complex subject of tax and turns it into something with the energy of a thriller. The first page of chapter one contains some worrying figures – 85% of world trade passes (on paper) through tax havens; small island financial centres have a balance sheet of $18 Trillion (a third of the world’s annual production); 99 of the top 100 companies in Europe have an offshore subsidiary. Tax havens profoundly affect the way that we live – they enable large companies to make huge profits without contributing to the society in which those profits are made. They have contributed to a huge transfer of wealth from the poor to the rich, both globally and within the richest countries. One...