What is Tax Haven?
There is no universally accepted definition of tax Havens. However, it can generally be defined as an offshore country that offers foreign individuals and companies little or no tax liability in an economically and politically static environment. The term ‘Tax Haven’ is in use since the 1950s.
Which countries are tax havens?
Some of the examples of Tax haven countries are – Switzerland, the British Virgin Islands, the Cook Islands, Panama, Mauritius, Bahamas, Hong Kong and etc.
Some of the common characteristics of tax Havens are as follows:
- Nil or low taxes
- Small-sized countries
- Liberal regulations
- Lack of information sharing facility
- Complete secrecy in terms of wealth, economic activity, and accounts.