Tax Havens

Multinational businesses often finance their Australian business investments with large amounts of overseas debt instead of equity as it is more tax effective.

Various exemptions apply, with the main one being the primary residence exemption.

Double taxation is the levying of tax by two or more jurisdictions on the same declared income, asset or financial transaction.

Generally, individuals who are deemed to reside in their country will be tax residents and taxed on their worldwide income.

Income generated from assets held in tax havens is often not disclosed, or included, in the controlling taxpayer’s tax returns.

A holding company is a parent corporation that owns enough voting shares in another company to control its policies and management.

Many foreign companies (manufacturing and services) operate in Costa Rica's Free Trade Zones where they benefit from investment and tax incentives.

Taxpayers, both individuals and companies, without a residence in Chile, only pay tax on their Chilean income.

Companies, not having their head office or place of effective management in Cape Verde territory, are only subject to tax on income obtained in Cape Verde.

Canada has emerged as a tax haven for the global elite, who create shell companies with figurehead directors to evade or avoid taxes.