Explain any 5 ways in which corporations can use tax havens to avoid corporate income taxes in their home countries.

Page 3of 3Marking schemeQuestion

1: What are tax havens? (5 marks)

Choose a tax haven of your choice (list above) and highlight any 5advantages that it offers in comparison to other countries that helps it attract offshore funding.(25 marks)

For instance, low or zero tax rates, banking secrecy etc.

Be concrete and specific with regard to the tax haven that you have selected and not general.TOTAL: 30 marksQuestion

2:Explain any 5 ways in which corporations can use tax havens to avoid corporate income taxes in their home countries.

To strengthen your answer, you can offer real-life corporate examples of companies that have used the method you mention. TOTAL: 30 marksQuestion

3:Do you think tax havens are healthy for the global financial system? (10 marks).

Why do you think so? (10 marks).

Do you have any four innovative suggestions that could help solve this problem of unhealthy tax competition? (20 marks).TOTAL: 40

Explain any 5 ways in which corporations can use tax havens to avoid corporate income taxes in their home countries.