There are many countries in world which are known as lsquo Tax Havens rsquo Consider the following a...........

Economic Affairs Tax System

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There are many countries in world which are known as ‘Tax Havens’. Consider the following attributes in this context.

1. Little or no tax liability

2. Political and economic stability

3. Pre-condition of residential status for operating companies

4. Financial transparency with foreign tax authorities.

Which of the facilities which are provided by such countries to make them Tax Havens?

1 and 3

1, 3 & 4

1 and 2

1, 2 & 4

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Explanation:

Only 1st and 2nd statements are ture regarding 'Tax Havens'.
A tax haven is a country that offers foreign individuals and businesses a minimal tax liability in a politically and economically stable environment, with little or no financial information shared with foreign tax authorities. Tax havens do not require individuals to reside in or businesses to operate out of their countries to benefit from local tax policies. Due to the globalization of business operations, an increasing number of U.S. corporations, including Microsoft, Apple and Alphabet, are keeping cash in offshore tax havens to minimize corporate taxes.