Most foreign investment in #BRICs isn’t foreign at all—it’s tycoons using tax havens – Quartz
The clearest sign that BRICs are leaking tax revenues is that each country’s biggest source of outside investment is a tax haven. China counts the tiny Caribbean bolthole of the British Virgin Islands as its biggest source of foreign investment (not including the Chinese territory of Hong Kong). India has Mauritius, Russia has Cyprus, and Brazil has the Netherlands.
The explanation for these incongruent flows of cash is that wealthy nationals are sequestering their income offshore to avoid paying tax, and then bringing it home dressed up as foreign investment to disguise the source of the funds. Here’s how it works.