tax haven
Low-rate jurisdiction
A tax haven is a country or jurisdiction with very low taxes or lenient financial regulations, used by individuals and corporations to minimize what they owe elsewhere: The company routed profits through a Caribbean tax haven.
The term often carries connotations of evasion or impropriety, though many arrangements are technically legal.
Caribbean British overseas territory
- British Virgin IslandsUK overseas Caribbean territory
- PanamaIsthmus nation with waterway
- SwitzerlandAlpine republic, perpetually neutral
- LuxembourgEuropean grand duchy
Jersey · Bermuda · Isle of Man · Guernsey · Liechtenstein · Monaco · Singapore · Delaware
Inactive firm for transactions
- Swiss accountPrivate foreign bank holding
- numbered accountBank holding identified by digits
- opacityImpermeability to light
- non-disclosureMandated secrecy obligation
financial privacy · hidden assets · confidentiality · offshore banking · layering · front company · blind trust
Exposed secret shell companies
- money launderingDisguising criminal proceeds' origins
- transparencyState of being see-through
- CRSLegislative support agency
- whistleblowerInsider who reports misconduct
investigative journalism · revenue loss · inequality · corruption · sanctions evasion · dirty money · kleptocracy · reform
State of dwelling somewhere
- domicilePermanent legal residence
- incorporationForming a legal entity
- sovereigntySupreme independent authority
- holding companyBusiness owning other businesses
Exploitable gap in rules
- round-trippingSham transactions returning funds
- deductionConclusion from premises
- exemptionRelease from requirement
- deferralAct of delaying action
Rapid outflow of investments
- asset protectionSecuring owned resources legally
- fortuneWealth or destiny
- offshore trustForeign-held asset structure
- estate planningPreparing asset distribution posthumously
inheritance · holdings · portfolio · private banking · endowment · ultra-rich · billionaire · oligarch
Cayman Islands
Caribbean British overseas territory
- British Virgin IslandsUK overseas Caribbean territory
- PanamaIsthmus nation with waterway
- SwitzerlandAlpine republic, perpetually neutral
Luxembourg · Jersey · Bermuda · Isle of Man · Guernsey · Liechtenstein · Monaco · Singapore · Delaware · Bahamas
shell company
Inactive firm for transactions
- Swiss accountPrivate foreign bank holding
- numbered accountBank holding identified by digits
- opacityImpermeability to light
non-disclosure · financial privacy · hidden assets · confidentiality · offshore banking · layering · front company · blind trust
Panama Papers
Exposed secret shell companies
- money launderingDisguising criminal proceeds' origins
- transparencyState of being see-through
- CRSLegislative support agency
whistleblower · investigative journalism · revenue loss · inequality · corruption · sanctions evasion · dirty money · kleptocracy · reform
residency
State of dwelling somewhere
- domicilePermanent legal residence
- incorporationForming a legal entity
- sovereigntySupreme independent authority
loophole
Exploitable gap in rules
- round-trippingSham transactions returning funds
- deductionConclusion from premises
- exemptionRelease from requirement
capital flight
Rapid outflow of investments
- asset protectionSecuring owned resources legally
- fortuneWealth or destiny
- offshore trustForeign-held asset structure
estate planning · inheritance · holdings · portfolio · private banking · endowment · ultra-rich · billionaire · oligarch · dynastic wealth
- Zug
- Irish economyFDI, GDP, GNP, euro, bailout
- trade zonesfree trade zone, trading hub, economic zone, free zone, trade hub
- tax-freeduty free, exempt
- international taxarm's length, offshore income, bilateral treaty, CRS, host country
- offshore financeoffshore banking, private banking, private banks, Swiss banks, Swiss banking
tax havenwelfare state
Government-funded citizen support system
Scandinavian countries · France · Denmark · Sweden · Belgium
tax, haven, taxing, taxes, taxation, havens, safe haven, taxable, untaxed