Legal Approach To Tax Haven

This thesis is to explore the legal issues relevant to Tax havens by defining key concepts and criteria , which is helpful to the current concern for harmful tax practice, where the developing countries are still under the effects that is to encourage the investment inflow by lower down the tax or even zero tax. Such concepts and criteria become a major importance in identifying the possible harmfulness in existed in different preferential tax policies.This thesis applies the legal analysis to the employing or using of tax havens, as to explore the proper legal countermeasure to the tax havens. However, the common sense we may easily reach is that tax havens have no longer only been used or employed for the sole purpose of tax avoidance. Due to the rapid development of world economy and finance, tax haven has become one of the most frequently resorted instrumental resources. Therefore, this thesis explores the feasibility, in the angle of legal measures, in the employing or using of tax haven as to serve for the purpose of pacing China's steps into the world interactive economy and finance, where legal measure shall be instrumental.As the conclusion of this thesis, tax havens shall not always be referred as "trouble maker". By years of effects, some of the international organizations have driven the tax haven into the commitment of cooperation. However, many of the modern employing or using of tax haven serve as the basis or instruments to world economy, which are all naturally derived or benefit from the "uncooperative" history of these tax haven. Those instrumental employing or using of tax haven will definitely turn out to be unfounded, if tax havens are forced into the absolute "cooperation". Therefore, this thesis holds that tax haven shall be dealt with proper internal or domestic adjustment of each countries rather than imprudent interference into the legislation or national structure of these tax havens.