Tax haven

A tax haven is a place where certain taxes are levied at a low rate or not at all. Among tax havens, different jurisdictions tend to be havens for different types of taxes, and for different categories of people and/or companies.

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One way a person or company takes advantage of a tax haven is by moving to, and becoming resident for tax purposes in, the tax haven (U.S. citizens see below). Another way for an individual or a company to take advantage of a tax haven is to establish a separate or subsidiary legal entity (an offshore company, trust or foundation) in the tax haven. Assets are transferred to the new company or trust so that gains may be realised, or income earned, which otherwise would be realised or earned by the beneficial owner.

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Whether all this is tax avoidance or tax evasion is not always entirely clear and depends upon the legislation of the countries involved and the particular circumstances of the companies or individuals.

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Many countries (particularly OECD countries) have laws that make it difficult for their residents to own a company (or have an investment) in a tax haven without paying tax either in the tax haven or where they are resident. For example, income or gains arising to the offshore company or investment may attributed for tax purposes to the owner or investor under CFC or other laws. Although many countries also have bilateral double taxation treaties to prevent their residents from paying tax twice (although, typically, the higher rate of tax charged in the two countries is due), few countries have tax treaties with tax havens.

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Offshore company: An offshore company is one which does not conduct substantial business in its country of incorporation. They are sometimes known as non-resident companies....

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Foundation: Foundation may refer to:...

Tax haven related Images and Photos (experimental)

Bell Haven Manor	New Haven Railroad	New Haven Railroad	The Tax Collector
Two Tax Gatherers c.1540	You Haven't Even Seen My Bad Side Yet	Lighthouse Haven 1000 Piece Puzzle	At the Tax Collector's
New Haven Connecticut - Football Game at Yale Bowl	New Haven Connecticut - Aerial View of the Yale Bowl	The Tax Collector 1543	Mansfield Grove New Haven Connecticut