What is a Tax Haven?

A Tax haven is a country that provides individual and foreign businesses with minimal or less tax liability for their deposits into the bank, or we can say that when any country imposes the minimum possible tax on any foreign citizen and business, or corporation, it is referred to as a tax haven.  

Advantages of a Tax Haven 

Here are some of the advantages of the tax haven given below: 

• The main advantage of the tax havens is to save money and pay less in taxes. 
• Tax havens result in the growth of both businesses and individuals. 
• The country's economy also grows fast as tax havens promote new investments, which is beneficial for the whole country. 
• Tax havens have no capital gains, which results in more investment. 

Disadvantages of Tax Haven

Here are some of the disadvantages of the tax havens given below: 

• Tax havens promote some illegal and fraudulent activities. 
• Tax havens can impose a high import duty on goods imported into a country. 
• It provides many benefits to the local people more as compared to the large corporations. 
• Due to the lack of transparency in the Tax havens, parties can be exposed. 
• In a business deal, there are high chances that parties will mislead each other.