Vanuatu is a pure tax haven. Freedom of movement of capital and absence of direct taxation of any kind on citizens and resident expatriates alike made Vanuatu an attractive offshore financial center (OFC) in the Pacific. Vanuatu for its budgetary needs has therefore, been depending on indirect...

Tax expenditures are considered as a tool to channel tax revenue into various industries and to facilitate certain specific activities of the government. To a great extent the amount of revenue to be raised depends on the existence of tax bases and tax rates prevailing in the country. The...