Concept Of Tax Haven In A Global Tax Competition

Whilst there never has been an exact definition of the concept of a tax haven, there has been some agreement on the recognition that certain countries are tax havens. Some countries finance their public service with a minimum or even no internal income taxes. They offer their jurisdiction for use by non-residents for purpose of avoiding tax in their own country of residence, countries that raise substantial revenues from their income tax. Such a tax system has features that would constitute harmful tax competition. This summary addresses the issue of tax havens and their harmful tax competition practices.

The following questions have been addressed in this article:

What are the main purposes of tax havens?
Is there an indicator that would show that a country is playing the role of a tax haven?
What are the main factors in identifying tax havens?

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