Tax havens have grown in reputation and power in recent years. They attract more and more foreign companies in their territories by the weakness or absence of local taxes and other benefits of their own, including banking confidentiality. The offshore markets are now a key player in the global economy.

Financial havens are small territories, most of the time they are islands, which, despite a weak economy, a large volume of transactions on the asset. These communities are home to many foreign firms are attracted by the benefits and laws of the host country. These advantages are particularly located in the financial sector but there are also advantages in land. These benefits are created by the low level of taxes collected. Despite the strong presence of foreign companies, however, most of these countries keep an economy atrophied, as is the case of Jamaica and several islands Pacific.

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Definition of a tax haven

The definition of offshore is always relative. It is generally accepted that a tax haven is a place where the taxes are insignificant or nonexistent. However, the criteria of the OECD as well as those of the IMF to the conclusion that a given territory is a tax haven when several conditions, additional to those already mentioned, are met. This is called a tax haven when a locality has a political and economic stability and good communications infrastructure and transportation. To this must be added a financial boom relative to the size of territory, privacy and commercial banking, the use of cash to the changes that are practiced freely and a low tax regime.

The economic and tax havens

Economic actors are attracted to foreign tax havens for the simple reason that they can enjoy greater freedom of movement with respect to taxes in those communities. They pay less in taxes so they maximize their profits. Thus, multinational companies prefer to establish their headquarters in tax havens and set up subsidiaries in other countries where the tax burden is higher. As a result, they manage to have a turnover greater. Tax havens and call operators to settle at home with these terms. On the other hand, they have adapted to technological change and rely heavily on the Internet and the opportunities that the network could offer. Terminal building or by being a transmitting antenna of the canvas, he managed to earn a margin on the price of communication that would normally be shared by the issuing country and the receiver of the communication.

Tax havens and legal haven

The image of tax havens is inseparable from the trafficking of all kinds. The proposed benefits, including the banking and commercial secrecy, attracting more and more people traffickers and disreputable practices. Indeed, it is very easy to circumvent the laws and divert them to his advantage. When this happens, the place becomes a paradise offshore record. To combat this growing threat, the OECD called on offshore markets to waive banking confidentiality. This exemption is in the form of request for information on individual accounts, not all banking operations. Some countries have agreed to work, others do not want to sacrifice their prestige and their connection to their tenants.