Tax Havens

1) Which of the following characteristics is/are been shared by the various tax havens in the world?

a) Minimal disclosure requirements.
b) Possibility to hide beneficial ownership.
c) Low or no effective taxation on income and wealth.
d) All of the above

2) Which of the following countries is not considered a tax haven ?

a) South Korea
b) Mauritius
c) Bahrain
d) Panama

3) Which of the following islands is not considered a tax haven ?

a) The Channel Island.
b) The Baffin Island.
c) The British Virgin Islands.
d) The Cayman Island.

4) Why the Panama is considered a tax haven?

a) Territorial system of taxation.
b) A company can be set up in 2 days.
c) Poor oversight by the official central bank.
d) Lack of exchange controls.

Answers:

1) d
2) a
3) b
4) c, there is no official central bank in Panama.

Reference : The Hindu Newspaper