ELI5: Explain Like I'm 5

Corporate tax haven

A corporate tax haven is a place where companies can avoid paying taxes by keeping their money in a different country or territory. Companies do this because taxes are usually lower in other countries than they are in their home country. For example, if a company is based in the United States but stores money in the Cayman Islands, it can save money by not paying taxes in the United States. This is why some companies choose corporate tax havens.