What is a Tax Haven?

Tax havens refer to those who seek to attract foreign capital inflows and prosper the economy of their country or region, and establish a certain range in their country or region to allow foreigners to invest and engage in various economic, trade and service activities, obtain income or own property Countries and regions that do not impose direct taxes on them, implement low direct tax rates, or implement special tax benefits.

Tax haven

Tax haven, "tax haven", the word tax haven comes from the English Tax haven , haven is used as a port or a refuge. Some media misunderstood haven as heaven, and thus misinterpreted it as "tax haven."

In April 2009, at the G-20 meeting, cracking down on tax havens became one of the topics of concern to participating countries.

On April 2, 2009, the OECD will announce the evaluation report.

According to the "Bank Secrecy Act" passed by the Swiss Parliament in 1934, banks should prevent customer information from being known to third parties. Regardless of whether the third party is private or official, Swiss banks have won the trust of customers around the world and attracted a large amount of capital inflows. It is understood that Swiss banks manage 1/4 to 1/3 of the world's private wealth. But at the same time, many people use this law to find a hole, evade taxes, or even transfer and hide illegal assets.

The unpleasant name of "tax haven" was therefore detained in Switzerland. With the advent of the financial crisis, the global economy is in a recession, and some financially constrained Western powers have begun to exert strong pressure on Switzerland, not only asking for information about their anonymous depositors, but also asking them to withhold for the past years and future Taxes. In fact, as early as 2010, Switzerland was forced to make concessions to agree to provide customer information to the US government, and the Bank Secrecy Act, which was once considered unbreakable, began to loosen.

Many analysts believe that the guilty plea and forced shutdown of Weglin Bank in the United States is likely to cause more governments to request information disclosure from Swiss banks. This will further jeopardize the Swiss banking industry, weaken the status of Swiss offshore financial center, and even affect the entire Swiss economy. ^[4]