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⍰ ASK What is the impact of offshore tax planning on international relations?

Offshore tax planning can have a significant impact on international relations, particularly in terms of tax avoidance and tax evasion. The use of offshore tax structures and arrangements by companies and individuals to reduce their tax liabilities can result in the loss of tax revenues for countries, which can strain their public finances and create political tension.

In some cases, the use of offshore tax structures may be perceived as tax avoidance or tax evasion, even if it is technically legal. This can harm the reputation of the company or individual involved, and can also harm the reputation of the country in which the offshore structure is located.
 

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