Mohd Rubnish Hussain, School of Law, Manav Rachna University
ABSTRACT
Tax heavens, jurisdictions offering minimal or zero tax liabilities, have emerged as pivotal instruments for multinational corporations (MNCs) to optimize global tax burdens, shield profits, and enhance shareholder returns. While these jurisdictions promote financial efficiency and cross-border investments, their opaque regulatory frameworks, lack of transparency, and role in facilitating tax avoidance have drawn significant criticism from governments and international bodies. This research employs a qualitative and analytical approach, combining doctrinal analysis of legal structures with empirical data from government reports, corporate case studies, and global financial surveys. The study dissects the operational mechanisms of tax heavens, evaluates their economic implications, and identifies challenges related to regulatory arbitrage, revenue loss for nations, and ethical concerns. By comparing global tax heaven models and analysing their impact on corporate behaviour and global equity, the paper proposes actionable reforms, including enhanced transparency protocols, international cooperation, and policy harmonization. The findings aim to provide a comprehensive roadmap for balancing corporate tax efficiency with ethical fiscal practices, ensuring sustainable global economic growth.
Keywords: Tax heavens, multinational corporations (MNCs), tax avoidance, regulatory arbitrage, transparency
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