An Empirical Review of Tax Havens

Abstract

Generally, tax havens are jurisdictions with low effective tax rates that offer business entities and individuals opportunities to avoid tax in other jurisdictions through restrictive exchange of information with other countries. There fifty-nine main tax haven jurisdictions globally today. These tax havens are generally small, prosperous countries with stable government administration. The said countries by undue reasons and techniques attract high levels of global Foreign Direct Investment (FDI) leading to a more vibrant economic performance in comparison to average global economic growth. It is however not very possible to with certainty determine the impact created to the general wellbeing of the economic status emanating from these tax havens. Albeit there is a significant economic inspiration to the neighboring economies that charge high levels of that spar growth as a result of these tax havens existence.