In addition to having very low effective tax rates, which of the following is also a characteristic of tax havens?

Question

Quizplus · Accepted Answer

Tax havens are known for their low effective tax rates but also for their lack of transparency in financial reporting, which makes it difficult for other countries to track the flow of money. They also have a lack of effective exchange of information, which makes it challenging for other countries to investigate possible tax evasion or money laundering. Furthermore, many tax havens have an absence of substantial activities requirement, meaning that companies can benefit from low tax rates without really conducting significant business activities in the jurisdiction, making it an attractive destination for tax avoidance.

In Addition to Having Very Low Effective Tax Rates, Which