[theRealMe]

Entities DO hide their money in tax havens to avoid paying taxes. They avoid paying taxes BECAUSE tax havens have low or no taxes. Those two definitions are defining two ends to the same thing. The caymans have low or minimal taxes. The caymans are also used by entities to hide their money so they don’t have to pay taxes. Entities are not incorporating in the Caymans for any reason other than avoiding taxes. And the actual definition of a tax haven specifically is “a country or independent area where taxes are levied at a low rate.”

[refurb]

True, but if you're looking to hide your money you want two things: 1) low taxes within the country and 2) low transparency as to who owns what in the country.

That's why Switzerland used to be a great place to hide your money decades ago - low taxes and numbered accounts where it was illegal to reveal the true identify of the account holder.

Based on DelaneyM's comment - Caymans has the 1st but not the 2nd.

[ImPostingOnHN]

it seems the topic is havening the money, not "hiding" it, so 2) isn't necessary

[DelaneyM]

Companies are not putting money in Cayman to hide it.

Some companies put money outside of their operating or home country to minimize taxes, but Cayman has no part of that besides being “not their operating country”.

And it’s actually less often the tax treatment of funds which brings companies to Cayman, and much more often the simpler regulations. Operating globally often means a geometric growth in financial complexity. Cayman is a neutral third country, which simplifies things tremendously. Think of us like a financial cache.