Editing Corporate haven (section)

===Distorted GDP/GNP===
[[File:2020 EU ratio of GNI to GDP.png|thumb|The distorted GNI to GDP ratio in some EU states indicates a profound disproportionality in corporate havens as Ireland and Luxembourg.<ref>{{Cite web |title=GDP (current US$) {{!}} Data |url=https://data.worldbank.org/indicator/NY.GDP.MKTP.CD |access-date=2022-05-13 |website=data.worldbank.org}}</ref><ref>{{Cite web |title=GNI per capita, Atlas method (current US$) {{!}} Data |url=https://data.worldbank.org/indicator/ny.gnp.pcap.cd?year_high_desc=true |access-date=2022-05-13 |website=data.worldbank.org}}</ref>]]
Some leading modern corporate tax havens are synonymous with [[offshore financial centres]] (or OFCs), as the scale of the multinational flows rivals their own domestic economies (the IMF's sign of an OFC<ref name="imf">IMF working paper: [http://www.imf.org/external/pubs/ft/wp/2007/wp0787.pdf Concept of Offshore Financial Centers: In Search of an Operational Definition; Ahmed Zoromé; IMF Working Paper 07/87; April 1, 2007] {{Webarchive|url=https://web.archive.org/web/20160407224029/http://www.imf.org/external/pubs/ft/wp/2007/wp0787.pdf |date=April 7, 2016 }}. (PDF). Retrieved on 2011-11-02.</ref>).  The American Chamber of Commerce Ireland estimated that the value of U.S. investment in Ireland was €334bn, exceeding Irish GDP (€291bn in 2016).<ref name="amc">{{cite news|url=https://www.independent.ie/business/irish/denouncing-ireland-as-a-tax-haven-is-as-dated-as-calling-it-homophobic-because-of-our-past-37032219.html|title=Denouncing Ireland as a tax haven is as dated as calling it homophobic because of our past|newspaper=Irish Independent|date=21 June 2018|quote=The total value of US business investment in Ireland - ranging from data centres to the world's most advanced manufacturing facilities - stands at $387bn (€334bn) - this is more than the combined US investment in South America, Africa and the Middle East, and more than the BRIC countries combined.|access-date=21 June 2018|archive-url=https://web.archive.org/web/20180621055202/https://www.independent.ie/business/irish/denouncing-ireland-as-a-tax-haven-is-as-dated-as-calling-it-homophobic-because-of-our-past-37032219.html|archive-date=21 June 2018|url-status=live|df=dmy-all}}</ref>  An extreme example was Apple's "onshoring" of circa $300 billion in [[intellectual property]] to Ireland, creating the [[leprechaun economics]] affair.<ref name="cofr">{{cite web|url=https://www.cfr.org/blog/tax-avoidance-and-irish-balance-payments|title=Tax Avoidance and the Irish Balance of Payments|publisher=Council on Foreign Relations|date=25 April 2018|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180428162831/https://www.cfr.org/blog/tax-avoidance-and-irish-balance-payments|archive-date=28 April 2018|url-status=dead|df=dmy-all}}</ref> However Luxembourg's GNI is only 70% of GDP.<ref name="economic-incentives.blogspot.ie">{{cite web|url=http://economic-incentives.blogspot.ie/2013/04/gdp-and-international-comparisons.html|title=International GNI to GDP Comparisons|publisher=Seamus Coffey, University College Cork|date=29 April 2013|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180319213831/http://economic-incentives.blogspot.ie/2013/04/gdp-and-international-comparisons.html|archive-date=19 March 2018|url-status=dead|df=dmy-all}}</ref>  The distortion of Ireland's economic data from corporates using Irish IP-based BEPS tools (especially the [[double Irish arrangement#Backstop of capital allowances|capital allowances for intangible assets]] tool), is so great, that it distorts EU-28 aggregate data.<ref name="brad">{{cite web|url=https://www.cfr.org/blog/ireland-exports-its-leprechaun|title=Ireland Exports its Leprechaun|publisher=Council on Foreign Relations|date=11 May 2018|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180514142152/https://www.cfr.org/blog/ireland-exports-its-leprechaun|archive-date=14 May 2018|url-status=dead|df=dmy-all}}</ref>

{{quote|A stunning $12 trillion—almost 40 percent of all foreign direct investment positions globally—is completely artificial: it consists of financial investment passing through empty corporate shells with no real activity. These investments in empty corporate shells almost always pass through well-known tax havens. The eight major pass-through economies—the Netherlands, Luxembourg, Hong Kong SAR, the British Virgin Islands, Bermuda, the Cayman Islands, Ireland, and Singapore—host more than 85 percent of the world's investment in special purpose entities, which are often set up for tax reasons. |source="Piercing the Veil", [[International Monetary Fund]], June 2018<ref name="imfx"/>}}

This distortion means that all corporate tax havens, and particularly smaller ones like Ireland, Singapore, Luxembourg and Hong Kong, rank at the top in global [[List of countries by GDP (PPP) per capita|GDP-per-capita]] league tables.  In fact, not being a county with oil & gas resources and still ranking in the top 10 of world GDP-per-capita league tables, is considered a strong proxy sign of a corporate (or traditional) tax haven.<ref>{{cite web|url=https://deepblue.lib.umich.edu/bitstream/handle/2027.42/39181/921.pdf?sequence=1|title=Do Tax Havens Flourish|publisher=Michigan Ross School of Business|date=2004|access-date=2018-05-25|archive-url=https://web.archive.org/web/20170818061404/https://deepblue.lib.umich.edu/bitstream/handle/2027.42/39181/921.pdf?sequence=1|archive-date=2017-08-18|url-status=live}}</ref><ref name="atlantic"/><ref name="qqtz">{{cite news|url=https://qz.com/1300880/tax-havens-mean-40-of-foreign-direct-investments-are-artificial/|title=How tax havens turn economic statistics into nonsense|work=Quartz|date=11 June 2018|access-date=12 June 2018|archive-url=https://web.archive.org/web/20180612143908/https://qz.com/1300880/tax-havens-mean-40-of-foreign-direct-investments-are-artificial/|archive-date=12 June 2018|url-status=live|df=dmy-all}}</ref> GDP-per-capita tables with identification of haven types are here {{slink||GDP-per-capita tax haven proxy}}.

Ireland's distorted economic statistics, post leprechaun economics and the introduction of [[modified gross national income|modified GNI]], is captured on page 34 of the OECD 2018 Ireland survey:<ref name="oecd">{{cite web|url=http://www.finance.gov.ie/wp-content/uploads/2018/03/OECD-survey.pdf|title=OECD Ireland Survey 2018|publisher=OECD|date=March 2018|access-date=2018-05-21|archive-url=https://web.archive.org/web/20180404202024/http://www.finance.gov.ie/wp-content/uploads/2018/03/OECD-survey.pdf|archive-date=2018-04-04|url-status=dead}}</ref>
{{ordered list|type=lower-roman
| On a Gross Public Debt-to-GDP basis, Ireland's 2015 figure at 78.8% is not of concern;
| On a Gross Public Debt-to-GNI* basis, Ireland's 2015 figure at 116.5% is more serious, but not alarming;
| On a Gross Public Debt Per Capita basis, Ireland's 2015 figure at over $62,686 per capita, exceeds every other OECD country, except Japan.<ref name="irip">{{cite news|url=https://www.independent.ie/irish-news/politics/national-debt-now-44000-per-head-35904197.html|title=National debt now €44000 per head|newspaper=Irish Independent|date=7 July 2017|access-date=21 May 2018|archive-url=https://web.archive.org/web/20180407053502/https://www.independent.ie/irish-news/politics/national-debt-now-44000-per-head-35904197.html|archive-date=7 April 2018|url-status=live|df=dmy-all}}</ref>
}}

This distortion leads to exaggerated credit cycles. The artificial/distorted "headline" GDP growth increases optimism and borrowing in the haven, which is financed by global capital markets (who are misled by the artificial/distorted "headline" GDP figures and misprice the capital provided).  The resulting bubble in asset/property prices from the build-up in credit can unwind quickly if global capital markets withdraw the supply of capital.<ref name="atlantic">{{cite magazine|url=https://www.theatlantic.com/business/archive/2016/07/tax-haven-curse/491411/|title=Why Tax Havens are Political and Economic disasters|magazine=[[The Atlantic]]|date=28 July 2016|access-date=25 May 2018|archive-url=https://web.archive.org/web/20180526041555/https://www.theatlantic.com/business/archive/2016/07/tax-haven-curse/491411/|archive-date=26 May 2018|url-status=live|df=dmy-all}}</ref>  Extreme credit cycles have been seen in several of the corporate tax havens (i.e. Ireland in 2009-2012 is an example).<ref name="ber"/>  Traditional tax havens like Jersey have also experienced this.<ref>{{cite news|url=https://www.theguardian.com/uk-news/2015/dec/08/fall-of-jersey-how-tax-haven-goes-bust|title=The fall of Jersey: how a tax haven goes bust|newspaper=The Guardian|date=8 December 2015}}</ref>

{{quote|The statistical distortions created by the impact on the Irish National Accounts of the global assets and activities of a handful of large multinational corporations [during [[leprechaun economics]]] have now become so large as to make a mockery of conventional uses of Irish GDP.|author=[[Patrick Honohan]], ex-Governor of the [[Central Bank of Ireland]], 13 July 2016<ref>{{cite web|url=http://www.irisheconomy.ie/index.php/2016/07/13/the-irish-national-accounts-towards-some-dos-and-donts/|title=The Irish National Accounts: Towards some do's and don'ts|publisher=irisheconomy.ie|date=13 July 2016|access-date=13 May 2018|archive-url=https://web.archive.org/web/20180429030914/http://www.irisheconomy.ie/index.php/2016/07/13/the-irish-national-accounts-towards-some-dos-and-donts/|archive-date=29 April 2018|url-status=live|df=dmy-all}}</ref>}}