Kuis 14 :The Tax Have as Symptom:Sebuah Refleksi Melalui Nietzsche (Beyond Good and Evil ) dan Heidegger (The Question Concerning Technology)

The modern world of taxation is currently being shaken by a practice that, while not unfamiliar, remains highly complex: the utilization of tax havens. These jurisdictions---often referred to as "tax haven countries"---offer low or even zero tax rates, coupled with strict financial secrecy. Multinational corporations and ultra-wealthy individuals frequently take advantage of these havens to avoid tax burdens imposed by the countries where their actual economic activities take place.

The teaching module "Tax Haven Country" (CPMK 5), developed by Professor Apollo from the Faculty of Economics and Business at Universitas Mercu Buana, serves as a key reference in exploring this practice. The topic is systematically framed to understand tax havens as a strategic form of tax avoidance that exploits weaknesses in the international legal framework.

However, this paper will not merely focus on the technocratic aspects. As students challenged to think critically and philosophically, we must delve deeper into this phenomenon through the lenses of two major thinkers: Friedrich Nietzsche, particularly his work Beyond Good and Evil, and Martin Heidegger, through The Question Concerning Technology. Here, the concept of tax havens will not be viewed solely as a legal or policy issue, but rather as a symptom---an expression of the modern mindset deeply entrenched in the logic of profit, efficiency, and power.

What Is a Tax Haven?
A tax haven is a country or jurisdiction that offers tax facilities with very low or zero tax rates, accompanied by a closed and non-transparent financial system. These jurisdictions create opportunities for individuals and business entities to transfer their wealth and profits there, in order to avoid being fairly taxed in the countries where their actual economic activities take place. 

prof Apollo

Introducing the Corporate Tax Haven Index (CTHI), developed by the Tax Justice Network. This index assesses the extent to which a country's tax system can be exploited by corporations to avoid taxes, as well as how much that country facilitates global tax avoidance flows. Countries such as the British Virgin Islands, Cayman Islands, and Bermuda rank at the top of this index. 

prof Apollo

The use of tax havens often involves establishing an intermediate company or Special Purpose Vehicle (SPV) in a jurisdiction with light tax treatment, which then serves as a conduit for international transactions. The main objective is to reduce the tax burden that would otherwise be owed in the country where the actual economic activity takes place. 

prof Apollo

This technique is carried out by exploiting legal loopholes. Tax haven countries, whether intentionally or unintentionally, provide lax legal structures that can be misused to facilitate tax avoidance. 

prof Apollo

This explanation is supported by a diagram illustrating the complex structure of a multinational corporation, consisting of entities spread across various jurisdictions for the purpose of tax efficiency 

prof Apollo

Why Do Tax Havens Exist? 

A Philosophical Reflection through Nietzsche and Heidegger

In his work Beyond Good and Evil, Nietzsche argues that the modern world is dominated by slave morality---a morality born out of resentment toward the powerful. In contrast, master morality is created by the powerful themselves to justify their actions. In the context of tax havens, powerful nations and multinational corporations play the role of the "masters" who design global tax laws and structures to serve their own interests. Meanwhile, developing countries become the "slaves"---left with no choice but to accept the system and struggle to catch up in terms of fiscal capacity.

The module includes a list of tax haven countries along with index scores that indicate their level of involvement in such practices. The existence of tax havens reveals that international law and regulation are not arenas of justice, but arenas of power. Nietzsche refers to this phenomenon as the will to power---the drive to dominate through law, regulation, and capital.

Meanwhile, Heidegger, in The Question Concerning Technology, introduces the concept of Gestell (enframing), a technological mode of thinking that reduces the world to mere resources (Bestand). In this way of thinking, law, the state, and even human beings are no longer valued for their existence, but for their function in supporting efficiency and productivity.

prof Apollo

It illustrates how SPVs and conduit companies are used to shift profits from one country to another without any real economic activity. This demonstrates how laws and regulations are treated as technological instruments to achieve tax efficiency. 

prof Apollo

It presents a scheme of the misuse of tax treaties (Double Taxation Avoidance Agreements) often carried out through the establishment of conduit companies in intermediary countries.

Within the framework of Gestell, a tax haven is a manifestation of the technological modern world: the state is no longer an ethical community, but a legal platform that can be strategically selected. Taxation itself is reduced to a matter of profit calculation.

prof Apollo

How Are Tax Havens Sustained?
One of the main strategies of tax avoidance is profit shifting through the payment of interest, royalties, and service fees between affiliated companies located in different jurisdictions. In doing so, the tax burden can be reduced in high-tax countries, while profits are funneled into tax haven jurisdictions. 

prof Apollo

It provides an example of how an SPV entity is used as the recipient of royalty or interest payments, even though the entity lacks any economic substance. In this context, transfer pricing practices are often employed to set prices between entities in a manipulative manner. 

prof Apollo

It presents a case study illustrating how developing countries become victims of tax haven practices. These countries lose significant potential tax revenues due to their limited capacity to monitor cross-jurisdictional transactions and to negotiate fair Double Taxation Avoidance Agreements (DTAAs). 

prof Apollo

It presents an illustration of capital flows from developing countries to tax haven jurisdictions, highlighting the real impact of such practices. As a result, development in the source countries is hindered, economic inequality worsens, and fiscal sovereignty is undermined. 

prof Apollo

Regulatory Efforts: The Case of Indonesia

In response to tax haven practices, Indonesia issued Minister of Finance Regulation No. 258/PMK.03/2008, which addresses income tax (PPh) deductions on income derived from the sale or transfer of shares by foreign taxpayers using intermediary companies located in tax havens.

Under this regulation, such income is subject to a final tax of 20% on 25% of the transaction value. However, if the foreign taxpayer resides in a country that has a Double Taxation Avoidance Agreement (DTAA) with Indonesia, tax withholding is only applied if the taxing rights are allocated to Indonesia.

This regulation reflects Indonesia's recognition of the importance of protecting its tax base from erosion caused by the use of tax haven jurisdictions.

prof Apollo

Final Reflection

Nietzsche and Heidegger urge us to transcend legalistic and technocratic modes of thinking. They encourage us to realize that practices such as tax havens are not merely technical or legal anomalies, but reflections of a deeper crisis---of values and of the modern human mindset that has lost its ethical depth. Tax havens are not just about laws; they concern how we perceive the world, the state, and our social responsibilities.

In the academic context, this reflection is crucial so that we do not become merely technical professionals, but also citizens with ethical awareness. Higher education should not only be a place for mastering formulas and regulations, but also a space for questioning, understanding, and shaping a more just world.

Conclusion

From the detailed discussions throughout this paper, it is clear that tax havens are not merely technical matters of taxation, but manifestations of the patterns of thought and power structures of the modern world. Tax havens are symptoms of a world trapped in the logic of efficiency, dominance, and ethical exclusion. Through Nietzsche's lens, we see how master morality subjugates slave morality within the global legal order, where the powerful write the rules to preserve privilege. Through Heidegger, we observe that the technological mindset---one that reduces the world to mere Bestand (resources)---has transformed law, taxation, and even the state into instruments for maximizing profit.

Tax havens exist because of global power imbalances, unequal international legal structures, and the will to obscure economic substance in favor of manipulable legal forms. Developing countries become permanent victims of these practices, losing valuable fiscal resources that could have been directed toward national development. National regulatory efforts, such as Indonesia's Ministerial Regulation No. 258/PMK.03/2008, are important but ultimately insufficient without a shift in the broader paradigm of thinking.

Therefore, the solution to this phenomenon cannot rely solely on fiscal policy. It must begin with critical reflection and a transformation of worldview. We must move away from purely technocratic approaches and begin to build a global system grounded in ethics, justice, and solidarity among nations. Academics, policymakers, and the global community must unite in upholding fiscal justice that prioritizes human values.

By framing the tax haven as a symptom, this paper has sought to show that genuine tax reform demands more than just new regulations---it requires a shift in consciousness, a renewal of values, and a reconstruction of the global order toward a more dignified and humane future.

References

• Nietzsche, F. (2002). Beyond Good and Evil. Cambridge University Press.

• Heidegger, M. (1977). The Question Concerning Technology and Other Essays. Harper & Row.

• Apollo, Prof. (2023). K014 -- Tax Haven Country. Faculty of Economics and Business, Universitas Mercu Buana.

• Ministry of Finance of the Republic of Indonesia. (2008). Regulation No. 258/PMK.03/2008 on Income Tax for Share Transactions.

• Tax Justice Network. (2022). Corporate Tax Haven Index (CTHI).

• OECD. (2021). Addressing the Tax Challenges of the Digital Economy (OECD/G20 BEPS Project).