Definition
A "tax haven" is a country or jurisdiction with very low or no income taxes, allowing individuals or companies to avoid paying higher taxes in their home countries. Think of it as a financial loophole, a place where money can be parked to minimize tax liabilities. These havens often have strict banking secrecy laws, making it difficult to trace financial transactions. While not always illegal, using tax havens is often controversial and seen as unethical. They can undermine the tax base of other countries.