Foreign Tax Shelters Used by The BRIC's

This article (via Manan Shukla) shows how BRIC multinationals use their favorite tax havens to avoid taxes.  Their profits flow to a tax haven and they return to their home country as foreign direct investment (FDI).  This is called a "round trip".  The "Dutch Sandwich" is also described in this article.

All of these tax havens, and the techniques used to exploit them, are well known.  The implication is that governments in high tax states prefer to look the other way when they are used by their large corporations.  Every time one of the tax avoidance schemes is publicized in the press, the corporation claims, correctly, that they have done nothing illegal.