A tax haven is a place with extremely low tax rates. The rationale is that rich people and businesses can choose where to pay tax, so they are attracted to places with the lowest tax rates. As a result, the tax havens receive tax income that would otherwise go to other countries. Tax havens are good for both taxpayers and for the people of the tax havens. To what extent do you agree or disagree?
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Some
countries
offer extremely low tax
rates and these places are regarded as tax
havens
. Some reason that wealthy individuals and businesses have the option of where to pay tax
, with this
, they are attracted to these places. Consequently
, tax
havens
receive tax
income that should otherwise
go to other countries
. It is often argued that it is beneficial for both taxpayers and the citizens of the tax
havens
. Personally, I disagree that tax
havens
are good for taxpayers and the tax
havens
' citizens.
Tax
havens
can have advantages for corporations and extremely wealthy people, however
, this
can have a potential for misuse in illegal tax
avoidance. They can use tax
havens
as a legal means of concealing money earned overseas while avoiding higher taxes in one's own country. Tax
havens
have the ability to do this
by being uncooperative with the foreign tax
authorities. For example
, companies can do business in a tax
haven and get away with paying taxes in their own country thus
, increasing their earnings overseas. However
, there is an increasing international political pressure for tax
havens
to cooperate with the foreign tax
authorities. Additionally
, countries
with a higher tax
rate can result in a loss of tax
revenues thus
contributing to the increasing incidence of the financial crisis. This
can damage livelihood in other countries
,especially the poorer countries
.
In conclusion, tax
havens
can be beneficial tax
saving options for wealthy people and large corporations however
, they can be damaging to other countries
and its citizen as it opens option for committing illegal tax
avoidance. Thus
, tax
havens
are not beneficial to taxpayers and the people of a country.Submitted by estillorericamae on
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