i. Explanation of “Tax Havens”:
A tax haven is a jurisdiction or country where certain taxes are levied at a very low rate or are entirely absent, typically on income, capital gains, or inheritance. These jurisdictions attract foreign investors and corporations by offering minimal or no taxes on profits, ease of doing business, and privacy protections. Tax havens are often used for tax avoidance or evasion purposes, and they provide financial secrecy, which makes it difficult to trace the ownership of assets or income.

ii. Three Factors in Considering a Jurisdiction as a Tax Haven:

1. Low or No Tax Rates:
   The jurisdiction imposes little or no taxes on income, capital gains, inheritance, or other taxes, making it attractive for investors or businesses.
2. Financial Secrecy:
   The jurisdiction allows significant confidentiality, meaning the financial transactions, ownership structures, and asset holdings are not easily disclosed to foreign tax authorities.
3. Ease of Business Setup:
   There are minimal regulatory requirements for setting up businesses, opening bank accounts, or establishing trusts, making it easier for businesses and individuals to operate with low transparency.

iii. Five Countries that are Tax Havens:

1. Bermuda
2. Cayman Islands
3. Luxembourg
4. Switzerland
5. Monaco