A tax haven is a country or territory with very minimal tax liability for foreign businesses’ and individuals’ bank deposits. These jurisdictions often have strict privacy laws and loose financial regulations, making them attractive to individuals and corporations looking to minimize their tax burdens and perhaps make illicit transactions, such as bribery or moving dirty money. This practice provides tax advantages for corporations and the wealthy, with a high potential for misuse in illegal tax avoidance schemes. 

How Tax Havens Relate to Whistleblowing

Whistleblowers can play a crucial role in exposing tax haven schemes and holding those involved accountable by:

1. Exposing Tax Evasion: Whistleblowers working in financial institutions or tax authorities may uncover individuals or corporations using tax havens to evade taxes.
2. Providing Evidence: They can provide critical evidence, such as documents, emails, or financial records, to support investigations into tax havens.
3. Promoting Tax Justice: By exposing tax havens, whistleblowers can help ensure that everyone pays their fair share of taxes, promoting fairness and equity.