Question: a. What is meant by the term tax haven? b. What are the desired characteristics for a country if it expects to be used as

a. What is meant by the term “tax haven”?

b. What are the desired characteristics for a country if it expects to be used as a tax haven?

c. What are the advantages leading an MNE to use a tax haven subsidiary?

d. What are the potential distortions of an MNE’s taxable income that are opposed by tax authorities in non-tax haven countries?

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a Many MNEs have foreign subsidiaries that act as tax havens for corporate funds awaiting reinvestment or repatriation Taxhaven subsidiaries categoric... View full answer

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