what are tax havens?

 Tax havens are countries or territories that offer low or no taxes and financial privacy to individuals and companies. They attract investment and business activities by offering low tax rates, minimal disclosure requirements, and strict bank secrecy laws.

Tax havens are often used by individuals and companies to minimize their tax liability and protect their wealth. They can also be used to hide money and assets from tax authorities and hide ownership information. This can lead to tax evasion, money laundering, and other illicit financial activities.

While tax havens are legal and have a legitimate role in the global financial system, they have also been criticized for enabling tax avoidance and contributing to the erosion of tax bases in other countries. In recent years, there has been increased international pressure to increase transparency and accountability in tax havens, and many countries have taken steps to enhance cooperation and information exchange to address tax avoidance and evasion.