Territory whose laws may be used to avoid or evade taxes. The Organisation for Economic Cooperation and Development defines them as jurisdictions where:
1. Non-residents undertaking activities pay little or no tax;
2. There is no effective exchange of taxation information with other countries;
3. A lack of transparency is legally guaranteed to the organisations based there;
4. There is no requirement that local corporations owned by non-residents carry out any substantial domestic activity. Not all of these criteria need to apply for a territory to be a haven, but a majority must.