An Old But Actual Issue: Panama Papers and Tax Havens

Tax is the most important revenue search of the state. Executing of public services without disruption and increasing its quality fundamentally depends on a well functioning tax system. In this respect maximizing the state's tax revenue will also increase utility level of citizens from public goods. But when the state desires to increase tax reveneue sometimes it can also lead to negative reactions in several economic segments. For example, taxpayers can be reluctant for tax compliance and they act tax avoidance or tax evasion behaviour. In this context, tax havens can lead to loss the state’s income significantly. Because, especially in the globalization process which off-shore financial transactions is intensified, tax havens have become an important tool of getting rid of tax liability. In this paper tax havens issue will be dealed on the basis of the “2016 Panama papers scandal”. Aim of the study is to examine the economic and social effects of tax havens in this current experience.