Work stuff : TAX HAVEN ?? What it is ?

Dear blogger ;

One of the results from the G-20 meeting in London just a few days ago, is to give a heavy sanction for a Tax Haven Country or Territory. What is Tax Haven Country ?

From the OECD forum, the definition of Tax Haven Country/Territory is :

1. A Territory with very low tax system or even no tax at all. And a place that foreign runaway from their country tax system can settled down.

2. A Territory with very strict law about bank/other financial institution costumers information. Nobody can retrieved information about any bank costumers here.

3. A Territory with no transparency about it's tax systems.

Why a country / territory want to be a Tax Haven ? Some said that they don't need to apply higher tax system to achieved their income target. Some do that to invite foreign taipan/ businessmen to come and share technology. And share money too. Some country even have nearly a half of their income from foreign businessmen.

One sign of a tax haven country is a lot of worldwide company have an address in this country. But no real building of this company is exist. Is only an address. Or a paper company. Only a stack of documents in the corner of some warehouse.

International community claimed that nearly all of the Tax Haven Countries are also the centre of Money Laundering. So a lot of money flew from normal country to tax haven country. Boston Consulting Group estimated nearly 7,3 trillion US Dollar a year go to tax haven country.

Philippines, Uruguay, Costa Rica and Malay's Labuan is among the worst of this Tax Haven Countries.

What is your opinion ?