Features and Advantages of using Tax Havens

Abstract

The appearance of tax havens is tied to the illicit money laundering process, evolving later under various illegal forms and currently, they operate under the protective umbrella of beneficial jurisdictions belonging to some politically protected States worldwide. For them to be capable of functioning, special conditions to attract investors have been created. The purpose of this study is to highlight the main features of the tax havens, their operating mechanism, and the peculiarities of their tax laws, and offshore entities regime. The article concludes with the reason for the occurrence, the existence and proliferation of tax havens, as well as legislative efforts that are submitted worldwide to eradicate them in the perspective of future global economic and financial developments.