Tax Havens

The book Treasure Islands is about tax havens and although the word tax havens has got tax in it, tax is only a part of what we're talking about. We'll get on to that but this example you're giving is about tax and tax is obviously very important. So yeah, imagine a crater bananas is picked and shipped in Ecuador and sent to the UK where the bananas are unloaded and end up in Tesco's for example. There's $900 of profit in this oversimplified example. What happens to that profit? Well, you set up three companies. You set up one Ecuador company, one UK company, and then one tax haven company. Let's call it Cayman Co