Tax Havens: The Worst Are Not Those You May Think.

Source : https://dofollownet.com

During the last G20 summit held in London in April 2009, participant countries agreed, among other measures, to strengthen international cooperation in order to get rid of tax havens (aka "fiscal paradises").

According to the U.S. Government Accountability Office, a tax haven could be defined by the following statements:

  • no taxes or only nominal taxes
  • lack of effective exchange of tax information with foreign tax authorities
  • lack of transparency in the operation of legislative, legal or administrative provisions
  • no requirement for a substantive local presence
  • self-promotion as an offshore financial center

Most famous tax havens include countries like Switzerland, Liechtenstein, Monaco, the Bahamas, Belize, the Bermuda islands, Cyprus, but the U.S.A. should also make some clean up in their backyards: several states like Delaware, Nevada or Wyoming match most of the criteria that define a tax haven, and actually provide the perfect environment for criminal organisations specialized in money laundering.

In Nevada, you need less documents to open a corporate bank account or to create a company than to get a driver license.

In March 2009, Michigan senator Carl Levin proposed a law to force states to identify real beneficial owners of corporations.

"Too many of our states are eager to explain how quick and easy it is to set up corporations within their borders, without acknowledging that those same quick and easy procedures enable wrongdoers to utilize U.S. corporations in a variety of crimes and tax dodges." says Levin.

He already proposed similar bills in 2006 and 2008, but the proposals went nowhere. But in 2006, Levin had a co-sponsor called Barack Obama (then a U.S. senator). That could make a difference today.

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Created by Keiros 34 weeks 3 days ago – Made popular 34 weeks 1 day ago
Category: Economy   Tags:
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