Question

Tax-haven subsidiaries are typically established in a country that can meet the following requirements:

a. a low tax on foreign investment or sales income earned by resident corporations and a low dividend withholding tax on dividends paid to the parent firm.
b. the facilities to support financial services, for example, good communications, professional qualified office workers, and reputable banking services.
c. a stable government that encourages the establishment of foreign-owned financial and service facilities within its borders.
d. All of these

Answer 1

D

Step-by-step explanation:

A tax haven is a foreign nation with limited or no restriction to legitimate business activities within its boundaries. It does so by providing certain incentives to attract investors , One of such is a minimum or no tax liability on income offered to foreign investors , hence the name tax haven.

It is characterized by low or no tax on income , lack of transparency,lack of effective exchange of information and a stable government.

It is also good to mention that this process benefit the host country byy attracting capital to their financial institutions

Answer 2

Answer: D. All of these

Explanation: Tax haven means very low or no tax rate for individuals or corporations. There are some countries in the world that offer tax haven.

Tax haven subsidiaries are typically established in countries that meet all the requirements in the options, all the options in the question are correct requirements that must be met.