Question

Which of the following is not a feature of a tax haven?

• A.
  Specialized economic activity
• B.
  Low or zero rates of taxation
• C.
  Non transparency
• D.
  ) None of the above

Answer 1

The correct option is A

Specialized economic activity
A tax haven is generally an offshore country that offers foreign individuals and businesses little or no tax liability in a politically and economically static environment.

Characteristics of tax haven countries generally include no or low-income taxes, minimal reporting of information, lack of transparency obligations, lack of local presence requirements, and no substantial economic activities.