The modern world of taxation is currently being shaken by a practice that, while not unfamiliar, remains highly complex: the utilization of tax havens. These jurisdictions---often referred to as "tax haven countries"---offer low or even zero tax rates, coupled with strict financial secrecy. Multinational corporations and ultra-wealthy individuals frequently take advantage of these havens to avoid tax burdens imposed by the countries where their actual economic activities take place.
The teaching module "Tax Haven Country" (CPMK 5), developed by Professor Apollo from the Faculty of Economics and Business at Universitas Mercu Buana, serves as a key reference in exploring this practice. The topic is systematically framed to understand tax havens as a strategic form of tax avoidance that exploits weaknesses in the international legal framework.
However, this paper will not merely focus on the technocratic aspects. As students challenged to think critically and philosophically, we must delve deeper into this phenomenon through the lenses of two major thinkers: Friedrich Nietzsche, particularly his work Beyond Good and Evil, and Martin Heidegger, through The Question Concerning Technology. Here, the concept of tax havens will not be viewed solely as a legal or policy issue, but rather as a symptom---an expression of the modern mindset deeply entrenched in the logic of profit, efficiency, and power.
What Is a Tax Haven?
A tax haven is a country or jurisdiction that offers tax facilities with very low or zero tax rates, accompanied by a closed and non-transparent financial system. These jurisdictions create opportunities for individuals and business entities to transfer their wealth and profits there, in order to avoid being fairly taxed in the countries where their actual economic activities take place.Â
Introducing the Corporate Tax Haven Index (CTHI), developed by the Tax Justice Network. This index assesses the extent to which a country's tax system can be exploited by corporations to avoid taxes, as well as how much that country facilitates global tax avoidance flows. Countries such as the British Virgin Islands, Cayman Islands, and Bermuda rank at the top of this index.Â
The use of tax havens often involves establishing an intermediate company or Special Purpose Vehicle (SPV) in a jurisdiction with light tax treatment, which then serves as a conduit for international transactions. The main objective is to reduce the tax burden that would otherwise be owed in the country where the actual economic activity takes place.Â
