Tax Havens: Fiscal Elision or Evasion?

An Analysis of this Strategy for Tax Planning in International Business Negotiations

Abstract

The theme addressed in this article is an analytical study of the international tax planning strategy known as the “Tax Havens” fictitious terminology, translated into Portuguese as “Tax Havens”, which concerns specific areas where they incur low or no taxation, constituted exclusively to this end. This research is relevant because of the expansion of the international companies that study the best legal regimes of taxation to allocate their headquarters and to establish branches in the face of the economic repercussion that the taxation has on commercial negotiations and capital flows. The research is also important to analyze the high and complex tax burden in Brazil on such negotiations involving companies. The problem theme that surrounds the research addresses the following question: what makes the strategy of tax havens a legal/illicit method of reducing the tax burden? The research is justified by the deconstruction of common sense about the illegality of this form of planning, notwithstanding recognizing the tax crimes committed in this panorama. The objective of the work is to verify the legitimacy and legality of this corporate strategy. The present article is a result of the development of the research, having as method of approach the deductive, and being a qualitative and descriptive research. The work follows the juridical-dogmatic aspect and the critical-methodological line. Bibliography and research elements included by scientific articles, national and international doctrines, as well as analysis of legal diplomas were used. The results obtained in the research demonstrate that tax havens are a licit strategy, although they are constantly used for different purposes.