Why do MNCs establish offices in tax-haven countries?

Question

Why do MNCs establish offices in tax-haven countries?

Answer 1

Well, the quick answer is that how they got to be a MNC by setting up a dummy office with a mailing address in a tax-haven country - a loop hole that needs to be closed.

Multinational corporation (or transnational corporation) (MNC/TNC) is a corporation or enterprise that manages production establishments or delivers services in at least two countries. Very large multinationals have budgets that exceed those of many countries. Multinational corporations can have a powerful influence in international relations and local economies. Multinational corporations play an important role in globalization; some argue that a new form of MNC is evolving in response to globalization: the 'globally integrated enterprise'.