What are Tax Havens used for?
When considering the use of a tax haven, one must remember that although tax havens may have the potential to attract illegal activity, they should not be condemned for this reason alone. Such a generalization would in essence be a condemnation of international tax planning, which has long been regarded not only as a privilege, but as a right. The utilisation of tax havens is clearly only limited by the imagination of individuals, companies, and their respective tax planners. Tax havens openly acknowledge the needs of individuals to safeguard their assets, and to place limits on the high tax burden they are exposed to in their current country of residence. If all countries recognized these needs, or at the very least considered them, the utilization of tax havens would probably diminish over time. However, until these needs are recognized, tax havens will continue to play an ever increasing role in all facets of tax planning.
