Meaning of Fiscal Paradise (What is it, Concept and Definition)

What is Tax Paradise:

Tax Paradise is a privileged place in relation to the payment of taxes.The tax havens are territories that have an advantageous fiscal policy , applied both to natural persons as for legal entities in order to attract foreign investments .

Tax havens are characterized by the fact that they are not linked to any type of international regulation and have no obligations on tax returns, or delivery of business information, which makes them the ideal place for tax evasion and avoidance , as well as money laundering.

See also Money laundering.

They are the favorite place for offshore companies , companies that have businesses in a country where they don't pay taxes because they are registered in tax havens where they are exempt from taxes or very low taxes.

This practice a is very common and sheltered by the law despite being popular knowledge, thanks to the scandal of the 'Papers of Panama' in 2016, that tax havens generate tax evasions of both large multinational companies and high-level politicians , creating corruption because it generates conflicts of interest.

Tax havens, or tax haven in English, generate a crisis in the state structure of the countries where large companies are located offshore because they cause the middle class to pay taxes that will never be enough to cover the social projects of that country.

According to the Organization for Economic Cooperation and Development (OECD) the list of 38 jurisdictions considered 'tax haven that do not cooperate' published in 2000 have all been removed from the list in 2009 for having signed the implementation of “transparency and efficient exchange of information for tax purposes” that until 2016 it has not made great progress.

The list of non-cooperating tax havens in the 2000 report included the following jurisdictions:

Andorra. Anguilla, United Kingdom Antigua and Barbuda Aruba The Bahamas, Commonwealth of the Bahamas Kingdom of Barein Bermuda or Bermuda, United Kingdom Belize The British Virgin Islands, United Kingdom The Cayman Islands, Kingdom Kingdom Cook Islands, free association with New Zealand (British Commonwealth of Nations) Cyprus, Republic of Cyprus Commonwealth of Dominica, Commonwealth of Nations Gibraltar, United Kingdom Grenada or Grenada (island) Guernsey or Bailia de Guernsey, British Crown Isle of Man, Corona British Jersey or Bailia de Jersey, British Crown Liberia, Republic of Liberia Liechtenstein, Principality of Liechtenstein Malta, Rep Maltese Marshall Island, Republic of the Marshall Islands Mauritius, Republic of Mauritius Monaco, Principality of Monaco Montserrat Island, United Kingdom Republic of Nauru Netherlands (Holland), Kingdom of the Netherlands Niue, New Zealand (British Commonwealth of Nations ) Panama, Republic of Panama Samoa, Independent State of Samoa San Marino, Serenisima Republic of San Marino Republic of Seychelles, British Commonwealth of Nations Saint Lucia Saint Kitts and Nevis, British Commonwealth of Nations Saint Vincent and the Grenadines, British Commonwealth of Nations Turks and Caicos Islands, United Kingdom US Virgin Islands, United States Republic of Vanu