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A few countries and regions in the world have established themselves as tax havens. However, the anticipated inflow of investments has not been as high...

      

A few countries and regions in the world have established themselves as tax havens. However, the anticipated inflow of investments has not been as high as expected by these countries and regions:

Required:
i. Briefly describe the concept of ‘tax havens’
ii. Summarize three benefits that might accrue to an investor in a tax haven

  

Answers


Wilfred
i) Concept of tax havens
- Minimal tax liability
- Incentive
- Harmonizes tax regulations and tax systems
- Attracts investment
- These are countries or regions which have regulations which ensures zero or minimal tax liabilities. This is a form of incentive to attract investments and create employment.
- Its through the harmonization of the various tax laws and tax systems

ii) The Benefit
- Higher disposable income due to the lower taxes which encourages re-investment.
- Availability of technology, Labour
- No Restriction of recantation at profit to the entries of origin,
Wilfykil answered the question on February 25, 2019 at 10:49


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