Question

What are the similarities and differences between tax havens, offshore financial
centres and international financial centres?

Answer 1

A tax haven is a jurisdiction where there are no taxes or nominal taxes are imposes, there is no proper law for income declaration and there is information dissemination available with such countries. A offshore financial c is a financial institution in a jurisdiction that primarily deals with foreign accounts and foreign national and on a large scale basis , usually help in saving the tax evaded money, doing transfers and not disclosing information. An international financial c provide financial services to the economy and usually are set up for economic and financial development of the country. Tax havens and off shore financial c contribute to a major chunk of tax evasion and are a safe place for evaders with no law governing them. An international financial c on the other hand is set up to promote the financial progress of a country but if not monitored they may also assist in tax evasion, money laundering and other harmful financial practices.