What are tax havens?

Tax havens are places where people and companies can hide their money to pay less tax.

Imagine you have a piggy bank full of your allowance money, but you want to keep some of it secret so you can buy more candy later. That’s kind of what happens in tax havens, they’re like special piggy banks for grown-ups.

In regular places, like your school or your neighborhood, people pay taxes on the money they earn. But in a tax haven, like some faraway islands, there are rules that let you keep more of your money.

For example, if you're a big company and you make lots of money, you might send some of it to a place with very low taxes, like a tax haven. It’s like moving part of your allowance to another piggy bank where you only have to give up a little bit for candy.

People use tax havens because they want to keep more money. It's like having extra coins in your pocket that you didn’t know were there, and you get to spend them on fun things!