The Cook Islands are islands located in the Pacific Ocean. The Cook Islands are known as tax havens because of the offshore services they offer. These offshore services include incorporating offshore companies, the establishment of offshore trusts, insurance companies, limited liability companies and offshore partnerships, which are vehicles used for international trade and reducing the tax burden of an individual or corporate body. Cook Islands offshore companies are tax free and so allow people who use the offshore services of the Cook Islands to maximize their profits. These offshore services make the Cook Islands useful for planning taxes and protecting assets.

The Cook Islands have a vibrant Financial Supervisory Commission which is responsible for regulating and supervising Cook Islands offshore services. The FSC of the Cook Islands is made up of different professional from various financial and legal backgrounds. This organisation works closely with other offshore jurisdictions and international bodies which ensure that Cook Islands offshore services are administered properly.

Tax haven Cook Islands have also established a Financial Intelligence Unit (FIU) which is based on Rarotonga, the main island. The FIU was created as a separate government ministry and is responsible for sharing, analyzing and collecting financial information. Any suspicions of unwanted financial activities in tax haven Cook Islands are dealt with by the FIU. One other major task of the FIU is regulate and oversee compliance within the Cook Islands to ensure that all reporting institutions are informed and updated with the state of the quality of offshore services in tax haven Cook Islands in accordance with the stipulations of the Financial Transactions Reporting Act.

The Cook Islands’ legal system is based on English Common Law. This legal structure makes international investors comfortable with incorporating and registering Cook Islands offshore entities. As a tax haven Cook Islands have also remodeled their laws accordingly so that Cook Islands offshore services are competitive. There are therefore lots of advantages to having a Cook Island offshore company which include zero taxes, flexibility of offshore corporate structure and the use of a versatile vehicle for doing business internationally. In this way, the FIU of tax haven Cook Islands detects, investigates, prosecutes and avoids undesirable activities that may arise in the process of offering offshore services.

Tax haven Cook Islands has signed no tax treaties with any country. Tax exemptions in offshore tax haven Cook Islands include zero withholding tax, no tax on profits and no capital tax. Tax haven Cook Islands also have very sound offshore confidentiality laws. It is therefore possible to incorporate offshore companies in tax haven Cook Islands without the fear of loss of privacy of personal or corporate information.

Tax haven Cook Islands have passed several offshore laws. These offshore laws in offshore tax haven Cook Islands are the International Partnership Act, the Financial Commission Act, the Limited Liability Act and the International Companies Act. The tax haven Cook Islands offshore laws have been amended accordingly and serve as the legal framework for offshore operations in offshore tax haven Cook Islands.