Cisco CCNP Certification Exam 642-845

In deciding whether or not a jurisdiction is a tax haven, the first factor to look at is whether 646-230 there are no or nominal taxes. If this is the case, the other two factors – whether or not there is an exchange of information and transparency – must be analysed. Having no or nominal taxes is not sufficient, by itself, to characterise a jurisdiction as a tax haven. 642-901 The OECD recognises that every jurisdiction has a right to determine whether to impose direct taxes and, if so, to determine the appropriate tax rate.To avoid tax competition, many high tax jurisdictions have enacted legislation to counter the tax sheltering potential of tax havens. Generally, such legislation tends to operate in one of five ways:
attributing the income and gains of the company or trust in the tax haven to a taxpayer in the 642-845 high-tax jurisdiction on an arising basis. Controlled Foreign Corporation legislation is probably the best example of this.