Jared, a Tax Novice, Has Recently Learned of Several Foreign

question 10

Essay

Jared, a tax novice, has recently learned of several foreign tax havens (i.e., countries with low tax rates). He is considering locating his manufacturing operations in one of these countries solely based on their low tax rates. What types of taxes is Jared ignoring? Explain how these other taxes may affect the viability of Jared's choice to locate in a foreign tax haven.

---

Definitions:

Self-Confidence

The belief in one's abilities, qualities, and judgment, empowering them to face challenges with assurance.

Abuse

Action or inaction of an adult that causes serious physical or emotional harm to a child.

Guilt

A feeling of responsibility or remorse for some offense, crime, wrong, whether real or imagined.

Shame

A painful emotion caused by a strong sense of guilt, embarrassment, unworthiness, or dishonor.