U.S. Tax Evasion Drives Foreign Investment - In the U.S.

Tax Prof Blog discusses a type of U.S. tax evasion where U.S. citizens hide money in companies located in offshore tax havens and then use that source of money to invest in U.S. equity and debt securities. Thus, a proportion of foreign investment in the U.S. is actually being created by American tax evaders instead of "true" foreign investors.

See Paul L. Caron, "Offshore Investments in U.S. Markets and U.S. Tax Evasion," Tax Prof Blog (Oct. 5, 2011).

Posted by Andrew Hodes, Associate Editor, Wealth Strategies Journal.