Tax Haven (Noun)
Meaning
A country or independent region where taxes are low.
Classification
Nouns denoting spatial position.
Examples
- Many multinational corporations set up subsidiaries in tax havens such as the Cayman Islands to minimize their global tax liability.
- The wealthy businessman used a complex web of shell companies and trusts in various tax havens to hide his assets.
- Bermuda is known to be a tax haven due to its zero corporate tax rate and lenient financial regulations.
- The country's decision to become a tax haven led to an influx of foreign investment and economic growth.
- Some critics argue that tax havens such as Switzerland and Monaco enable wealthy individuals to evade taxes and perpetuate financial inequality.