A company involved in international business might find it beneficial to establish an operation in a tax haven to avoid paying taxes in one or more countries in which the company operates. There are a number of tax jurisdictions with abnormally low corporate income tax rates (or no corporate income tax at all) that companies and individuals have found useful in minimizing their worldwide income taxes. Countries with no or very low corporate taxation are known as tax havens.

Required:

Demonstrate how a multinational company might use a tax haven to reduce income taxes by providing an example.

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I Multinational companies often use tax havens for reducing their tax expense Tax havens are those countrieslegislations with no or very lower tax rat... View the full answer