The aim of this paper is to investigate the impact of globalization and the changes it has caused throughout history until today and also the connection between the process of globalization with development and strengthening of tax havens. For multinational companies, doing business through subsidiaries in tax havens is desirable because it will reduce their tax liability. From the perspective of states, it is good for those who are tax havens because of the earnings they make and bad for others who lose their tax revenues and face unpredictability regarding future tax revenues. In the long run, a consequence is instability in the tax systems of countries, which can spill over to other countries and jeopardize global stability. Beside harmful tax practices, globalization and technological progress have enabled money laundering and easy money transfer around the world, often through anonymous bank accounts, allowing financing of criminal and illegal activities. Numerous examples around the world have shown that globalization has made the rich ones more richer and the poor ones more poorer. Progress has been made in recent years, but the obstacle remains difficult and slow implementation of changes and new rules globally.