  Multinational corporations use highly complex structures of parents and
subsidiaries to organize their operations and ownership. Offshore Financial
Centers (OFCs) facilitate these structures through low taxation and lenient
regulation, but are increasingly under scrutiny, for instance for enabling tax
avoidance. Therefore, the identification of OFC jurisdictions has become a
politicized and contested issue. We introduce a novel data-driven approach for
identifying OFCs based on the global corporate ownership network, in which over
98 million firms (nodes) are connected through 71 million ownership relations.
This granular firm-level network data uniquely allows identifying both
sink-OFCs and conduit-OFCs. Sink-OFCs attract and retain foreign capital while
conduit-OFCs are attractive intermediate destinations in the routing of
international investments and enable the transfer of capital without taxation.
We identify 24 sink-OFCs. In addition, a small set of five countries -- the
Netherlands, the United Kingdom, Ireland, Singapore and Switzerland -- canalize
the majority of corporate offshore investment as conduit-OFCs. Each conduit
jurisdiction is specialized in a geographical area and there is significant
specialization based on industrial sectors. Against the idea of OFCs as exotic
small islands that cannot be regulated, we show that many sink and conduit-OFCs
are highly developed countries.
