Tax Heavens p236 Flashcards
(2 cards)
1
Q
Stakeholders
A
Governments = Don’t like tax heavens, may encourage illegal actives e.g. in 2008 many Germans using banks in Lichtenstein to evade tax
TNC CEO = Favour tax heavens as gain profit instead of declaring all earnings e.g. Apple put 74b into tax heavens, only paid 2% tax, Google cut global tax in half in 2011
However, some companies may be against as affects authenticity and costs of operating in tax heaven 2X more expensive
(Not illegal, tax avoidance not evasion)
Expat living in tax heaven = Spend money within the heaven, allows heaven to make a lot of money back
2
Q
Cayman islands
A
Expats allow to still make money by moving to tax heavens and spending in lcoal economy
