ABSTRACT
Organized crime organizations, as well as individuals, have taken their illegal gains to oŸshore countries. Legitimate businesses have been using oŸshore countries for many years to avoid taxes and preserve capital. ‚ese countries which oŸer various business services, especially to multinational corporations, are called “tax havens.” International businessmen know that countries have diŸerent tax systems. ‚is disparity may constitute tax havens in relation to a particular operation or situation as 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 our economic chapter, organized crime and individual illegal operations pay no taxes on their income; therefore, tax havens become very attractive vehicles for hiding their untaxed income from both tax authorities and law enforcement. Secrecy is an important element for criminals.
