Tax Haven Abuse

Tax haven abuse refers to the practice of individuals or companies exploiting countries with low or no taxes to minimize their tax liabilities in their home countries. By shifting profits or assets to these jurisdictions, they often evade paying their fair share of taxes. This can involve complex structures and transactions that may not reflect genuine business activities. While using offshore accounts or entities isn't illegal, it becomes abusive when the primary purpose is to avoid taxes, leading to significant losses in tax revenue for governments and contributing to economic inequality.