human
I'm writing a paper on the issue of tax havens. Can you explain the concept in layman's terms?
assistant
Tax havens are countries, regions, or territories with low tax rates or tax exemptions that make them attractive to companies and individuals looking to reduce their tax burden. This can include offshore banking, where individuals and companies use banking services in other countries to avoid paying taxes, or setting up subsidiaries or companies in places where taxes are low or nonexistent. As a result, the entities avoiding taxes can keep more money without paying their fair share to the government.