Question

Q38. Which of the following is/are characteristics of a “Tax haven”

i) nill or nominal rates on certain taxes

ii) lack of Effective exchange of tax related information with foreign tax authorities

iii) No requirement for substantive local presence

choose the correct answer

• A. a) iii only
• B. b) i and ii only
• C. c) all the above
• D. d) ii only

Answer 1

The correct option is C

c) all the above

ans:C
A tax haven is a country that offers foreign individuals and businesses a minimal tax liability in
a politically and economically stable environment, with little or no financial information shared
with foreign tax authorities. Tax havens do not require individuals to reside in or businesses to
operate out of their countries to benefit from local tax policies