Corporate Flight: 'Moving' Offshore to Avoid US Taxes

Jacqueline Johnson, Mark Holub

Research output: Contribution to journalArticlepeer-review


Shows how many US companies, which are increasingly multinational, are using offshore subsidiaries to reduce their tax liability; some are even moving their head offices abroad or “offshore”. Discusses what offshore financial centres are; key characteristics are low taxation, little supervision of depositors, and secrecy of accounts. Points out that the term offshore is confusing, since large countries can be attractive to non-resident businesses, and so they are not a homogeneous group; within the USA itself, Delaware is a state with low taxes and so has long been used by companies which are actually based in another state. Describes how reincorporating offshore works and the problem it poses for US tax revenues; the issue is contentious, especially after September 11, but the Bush administration’s attitude remains relaxed.
Original languageEnglish
Pages (from-to)246-254
JournalJournal of Financial Crime
Issue number3
Publication statusPublished - 2003


Dive into the research topics of 'Corporate Flight: 'Moving' Offshore to Avoid US Taxes'. Together they form a unique fingerprint.

Cite this