Discussion questions:
1- Do you feel that it is ethical for a company to channel income to a tax haven in order to reduce or eliminate taxation? Explain.
Ethics is mostly a matter of the culture you live in. What is ethical and normal in one country might not be ethical in another. The no taxation is totally ethical in Bermuda, and unethical in the United States. It all depends on the way the laws are arranged in each country. It is in your business' best interest to reduce costs in any possible way, as long as it is legal, in order to maximize profits. If moving your business out of the country is what it takes to reduce or eliminate taxation, you should do it.