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It all depends on the way the laws are arranged in each country. It is in your business' best interest to reduce costs in any possible way, as long as it is legal, in order to maximize profits. If moving your business out of the country is what it takes to reduce or eliminate taxation, you should do it. It might not be ethical for Americans, but is not illegal.
2- Are there any disadvantages to Western California Life in establishing a subsidiary in Bermuda? Explain.
One of the first disadvantages I see threatening West California Life Insurance is that there are about 1,500 insurance companies already operating in an island of only 57,000 residents...
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