Why is Panama a tax haven and what is a shell corporation?
In: Economics
You know how when your dad buys you a bag of M&M’s when you’re shopping but then while you’re driving home eating your candy he keeps sticking his hand into the back seat for some the candy he bought you? That’s normal taxes. A tax haven is like having a car (Panama) where for some reason he never does that, just lets you eat it all yourself.
A shell corporation is when he buys you the candy but then you hide it in the arm rest so he doesn’t see you eat it and therefore doesn’t ask for any.
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