The Status of Tax Havens

A tax haven is an area that people either move to or stash money in when they want to legally avoid paying taxes.
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Tax evasion is a criminal offense where taxpayers refuse to pay taxes that they owe. Those seeking tax havens try to get around them by going somewhere with a generous tax policy.

This doesn’t always work, and at times it might be illegal as well. Nevertheless, areas with generous tax policies tend to attract businesses as well as individuals who are stifled by high tax rates.Tax Havens in 2015
The Top Ten Tax Havens for 2015

Governments around the world have been cracking down on people who use tax havens as a way to avoid paying their taxes. This recent enforcement has significantly alerted the list of popular tax havens.The top ten biggest ones for this year are:

1) Germany, which has recently made it much more easy for individuals to open up offshore bank accounts. The country is trying to crack down on this practice, but doesn’t want to alter its laws too much for fear of scaring away foreign investors.

2) Bahrain has numerous financial institutions that offer banking services to foreign citizens. This means that many people don’t even have to travel to the country if they want to stash funds away there and prevent paying taxes to their home nation.

3) While Jersey is a British Crown Dependency, it actually has a fairly underground economy. That has allowed a number of banks to open up in the region, and they tend to specialize in storing foreign accounts.

4) Singapore might be one of the best choices for opening an offshore bank account. Citizens of almost any nation are allowed to open up accounts with almost no hassles.

5) It might come as a surprise to American taxpayers that some consider the USA a tax haven, but the states of Wyoming and Nevada have generous tax policies that help residents to avoid other higher taxes.

6) Japanese banks usually don’t subject deposits made by clients to interest rate standards and regulations, which has helped to ensure that it has maintained a status as a strong tax haven.

7) Switzerland is quite famous for allowing foreigners to open up bank accounts. Many regulations have changed in regards to this practice. Nevertheless, it still has some of the most privacy-geared banks in the entire world.

8) Hong Kong is a special administrative region of the People’s Republic of China, which has helped it to avoid regular sales taxes as well as capital gains and payroll taxes. Personal taxes aren’t deducted from accounts of Hong Kong residents either.

9) The Cayman Islands is classified as a British Overseas Territory, but residents there aren’t subject to the same tax policies that are present in the UK proper. Personal income taxes are abolished there, as are corporate and payroll taxes.

10) Luxembourg has become very popular as a tax haven in the last few years. Despite being a member of the European Union, Luxembourg doesn’t have the same tax policies that many other EU member states do.