Tax Haven

The term tax haven is not clearly defined and there is some discussion as to how the term should be defined. For being regarding as a tax haven it is not sufficient that a jurisdiction offers low taxes. The OECD has stated that the following factors should be decisive if a jurisdiction should be regarded as a tax haven:

• No or nominal taxes.
• Lack of transparency.
• Laws or administrative practices that prevent the effective exchange of information for tax purposes with other governments on taxpayers benefiting from the no or nominal taxation.
• Absence of a requirement that the activity be substantial.

Other articles that might interest you:

1. Offshore Company
2. OECD Report on “Promoting Transparency and Exchange of Information for Tax Purposes”
3. Monaco’s Position as a Tax and Secrecy Haven
4. Why Offshore Tax Haven Company Incorporation