![]() |
Tax HavenKnowledge Center |
Description of Tax Haven. Explanation. |
|
All about Tax Haven. Join now. Completely free. |
Definition Tax Haven. Description.A corporate Tax Haven is a country or region that has a friendly tax regime or even imposes no tax at all. The Cayman Islands, Bermuda, Luxembourg and Switzerland are well known examples. On top of their low tax burden, these countries usually also offer less regulation and lots of privacy. Companies often form one or more special legal entities such as a trust, an offshore company, or a foundation in the tax avoidance process.
Tax Haven Types
In fact, tax havens are by no means similar. Rather they can differ on many dimensions such as political, economic or geographical dimensions. Orlov (2004) makes a division that is based on the attitude towards tax regulations; on how conducive these tax haven jurisdictions are towards their responsibilities. He distinguishes the following broad groups of tax havens:
Source: Orlov, M. (2004) “The Concept of Tax Haven: A Legal Analysis” Intertax Vol. 32 Iss. 2 pp. 95-111
Compare with: Special Purpose Vehicle |
|
Return to Management Hub: Decision-making & Valuation | Ethics & Responsibility | Finance & Investing More on Management | Return to Management Dictionary | |
This ends our Tax Haven summary and forum. |
About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service |