Taxes play a crucial role in the financial situation of a country and the problems that have surfaced

over the past two decades have recognised tax havens as one of the most efficient loopholes for tax
evading. Despite tax havens being extremely unprofitable for one country’s economy, many MNEs
still utilize tax havens to minimalize their taxes and maximise their net profit.

The French Republic strongly disagrees with this behaviour, moreover, recognizes this as a threat to
many countries, creating a disbalanced economy and an unjust distribution of money. It also believes
that tax havens are a danger to many governments as 32 trillion USD is stored offshore in tax havens,
resulting in a 0.5 trillion USD annual loss for authorities affected by tax havens.

The French Republic has acted against this issue trying to influence the action against tax havens and
urging their banks into closing their branches in tax havens. It also restricted the tax haven MNEs
from having coronavirus outbreak, considering their malicious tactics.

The delegation of France insists on reforming the neoliberal laws of tax havens, as the current treaty
allows tax evasion. It feels that tax havens need to be entirely eliminated. Furthermore, it intends on
taxing corporations with a branch in tax havens to balance the as it believes tax evasion is
unacceptable. It also believes UN should establish a worldwide regulation to decrease the amount of
tax evasion in all countries. Moreover, the delegation agrees with OECD and the BEPS package and
encourages MNEs and authorities to contribute to countries financially harmed by tax havens.

Conclusively, The French Fifth Republic strongly disagrees with the utilization of tax havens and
recognizes it as a major problem. Additionally, it believes that tax havens need to be removed
entirely under a worldwide UN tax regulation.