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Tax havens are often connected to growth in tourism, as finance and tourism conveniently share infrastructural prerequisites. This paper addresses the detrimental impacts of a tax haven development strategy adopted by small open economies in relation to the development of their tourism industry. Utilizing the synthetic control method, we find that since the 2016 Panama Papers scandal, Panama's tourism exports have fallen relative to an estimated counterfactual level that would have otherwise been attained. Moreover, based on an analysis of panel data drawn from 20 small open economies, we find that in the long run, the growth of the financial industry crowds out the tourism industry. Our findings warn tourism practitioners, based in tax havens, that they face an additional risk linked to potential tax scandals. Furthermore, the tourism industry may suffer reputational harm due to tax haven blacklisting and the crowding out of productive resources by the financial industry. JEL classifications: F43, H26, O57, Z32 [ABSTRACT FROM AUTHOR]

The transfer pricing case is a method that applies to those economic entities that carry out transactions between related parties, as is the case of the economic entity under review in the auto parts industry, in the context of tax authorities not wanting to allow companies to evade paying taxes, thereby taking unfair advantage of low-income jurisdictions or so-called tax havens. Their tax base suffers as a result of companies' use of questionable transfer pricing policies. In the present research we conducted an empirical analysis at a company in the automotive components industry, where we aimed to make a forecast of the gross trade margin based on the volume of expenses and revenues achieved in the first half of the analyzed year, we want to calculate the MoTC forecast until the end of the year. [ABSTRACT FROM AUTHOR]