What is a tax haven
- No tax, or very low rates of taxation;
- Strict bank secrecy provisions;
- A lack of transparency in the operation of its tax system, and
- A lack of effective exchange of information with other countries.
Tax Havens also help their users:
- Bypass financial regulations and regulatory watch dogs;
- Launder money earned illegally through drug trafficking or organized crime; and
- Hide from criminal laws and liabilities.
Tax Havens come in all shapes and sizes, from small, tropical Caribbean islands to old, aristocratic European principalities. They can be places you’d need a magnifying glass to find on a map or even large, major industrialized states. They can even be cities or designated areas within countries too.