ABSTRACT
Criminal organizations, as well as individuals, have taken their illegal gains to offshore countries. Legitimate businesses have been using offshore countries for many years to avoid taxes and preserve capital. These countries that offer various business services, especially to multinational corporations, are called tax havens. International businessmen know that countries have different tax systems. These disparities may constitute tax havens in relation to a particular operation or situation, compared with the tax treatment given to the identical taxable event in another country’s tax system. Hence, tax haven is a relative concept. As mentioned in Chapter 12, organized crime and individual illegal operations pay no taxes on their income; therefore, tax havens are very attractive vehicles for hiding their untaxed income from both tax authorities and law enforcement. Secrecy is an important element for criminals.
