Tax Havens or Offshore Financial Centre

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in Europe, Hong Kong and Singapore in Asia, and various Caribbean island nations in the Americas.” (2004: p 2) The study makes a comparative analysis of the tax haven regions with heavy tax zones to project the differences economies examine in respect of laving taxes on the companies and firms. The present study has also been supported by the literature relevant to the topic of the research. The research also contains theoretical framework in its fold that is helpful in elucidating the topic under study.
Different economies of the world at large have offered a variety of incentives to the corporations, organisations, and firms so that investment can be made within their economic set up, and economy could observe an imperative boost in the state of perfect competition created all over the globe in the aftermath of globalisation. The UK, USA, the UAE and other countries have established offshore centres for the local, national and multinational firms and brands, where the firms of sound reputation are offered considerable concessions in taxes and tolls, which encourages more and more firms make investment under rules and regulations designed by the governments for the offshore centres. “According to the Organisation for Economic Co-operation and Development”, Almeida submits, “international tax competition is lowering tax rates and making government expenditure more efficient worldwide.” (2004: p 2) Though tax havens do not exist in China and Germany in their true definition, yet there exist several low tax authorities in many countries of the world. These include Italy, the USA, Canada, China, Germany, France, Australia and others. “About a quarter of US and UK FDI”, Dharmapala notices, “is located in tax havens. By way of comparison, tax havens are home to only 0.7 per cent of the worlds population when havens are defined as in DH (2006), or just 0.2 per cent when using the OECD definition.” (2008: p 4)
Since low tax rates leave indelible