Many MNEs Have Foreign Subsidiaries That Act as Tax Havens

question 60

Essay

Many MNEs have foreign subsidiaries that act as tax havens for corporate funds awaiting reinvestment or repatriation. Tax-haven subsidiaries, categorically referred to as International Offshore Financial Centers, are partially a result of tax-deferral features on earned foreign income allowed by some of the parent countries. Tax-haven subsidiaries are typically established in a country that can meet four basic requirements: List and define these requirements.

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Definitions:

Major Crimes

Serious criminal offenses that typically involve violence or significant harm to individuals or property, such as murder, rape, or burglary.

Political Citizenship

The status of being a citizen, including rights, privileges, and duties associated with participating in the political process of a country or community.

Deprivation-Based Theories

Theories that explain social phenomena, such as crime or political unrest, as results of individuals' unmet needs or desires.