Tax havens are countries or territories that have a low tax rate or no tax at all, and offer financial privacy and secrecy to individuals and corporations. These jurisdictions typically have laws and regulations that allow individuals and corporations to minimize their tax liability by moving their assets and profits to these places with favorable tax laws.
Many tax havens are small island nations or territories with limited economic activity, and have become popular destinations for individuals and businesses seeking to avoid or reduce their tax burden. Some of the most well-known tax havens include the Cayman Islands, Bermuda, Switzerland, and the British Virgin Islands.
While the use of tax havens is not necessarily illegal, their secrecy and lack of transparency have made them a target for criticism and scrutiny. Many critics argue that tax havens enable tax evasion, money laundering, and other illicit financial activities, and that they contribute to global economic inequality by allowing the wealthiest individuals and corporations to avoid paying their fair share of taxes. As a result, a number of international organizations and governments have taken steps to crack down on the use of tax havens and increase financial transparency.
