Hear! Hear!
Practicing What You Preach
An editorial in the Financial Times of London a few weeks ago clearly underscores the rank hypocrisy of American and British tax collectors.
For years, both the IRS and its counterpart in the U.K., have loudly condemned offshore tax haven jurisdictions for their alleged facilitation of tax avoidance by foreigners, especially Americans and Brits.
As we have said many times, in dollar volume the biggest tax havens in the world are the United States and the U.K. themselves. Both of these nations grant all kinds of tax exemptions and breaks for foreign investors and residents that are denied to their own citizens.
FT writes: "Jokes about offshore tax havens with more mailboxes than people are plentiful in the world's onshore financial centers. But it looks as if the jesters have got it wrong: the real offshore tax havens may be the U.K., the U.S. and other supposedly "onshore" financial centers. These countries need to practice what they preach on reducing tax avoidance."
"A report out on Tuesday points to the widespread failure of large countries to adhere to the tax rules that they have previously laid down for the havens. It brings into question what is really offshore.
"The U.S. lies off the shores of most other nations in the world. It is also fond of pointing fingers at Caribbean islands, but is unable to reel in its own renegade states. Delaware, for example, falls short of some of the demands of the Organization for Economic Co-operation and Development - a club of large, rich economies - on small countries for tax reporting. Little wonder that it hosts mailboxes for more than half of U.S. corporations and 60 per cent of Fortune 500 companies. The vast majority of U.S. states do not require - let alone verify - ownership information when a company is formed. Companies need to provide almost as much information to register a web address."
"It is hypocritical of rich countries to rail against offshore tax havens, while failing to do the maximum to penalize foreign tax avoiders within their own borders. Countries with a large population and tax base will always have a stronger argument against small countries that attract tax avoiders, but it is best to lead by example."
Practicing What You Preach
An editorial in the Financial Times of London a few weeks ago clearly underscores the rank hypocrisy of American and British tax collectors.
For years, both the IRS and its counterpart in the U.K., have loudly condemned offshore tax haven jurisdictions for their alleged facilitation of tax avoidance by foreigners, especially Americans and Brits.
As we have said many times, in dollar volume the biggest tax havens in the world are the United States and the U.K. themselves. Both of these nations grant all kinds of tax exemptions and breaks for foreign investors and residents that are denied to their own citizens.
FT writes: "Jokes about offshore tax havens with more mailboxes than people are plentiful in the world's onshore financial centers. But it looks as if the jesters have got it wrong: the real offshore tax havens may be the U.K., the U.S. and other supposedly "onshore" financial centers. These countries need to practice what they preach on reducing tax avoidance."
"A report out on Tuesday points to the widespread failure of large countries to adhere to the tax rules that they have previously laid down for the havens. It brings into question what is really offshore.
"The U.S. lies off the shores of most other nations in the world. It is also fond of pointing fingers at Caribbean islands, but is unable to reel in its own renegade states. Delaware, for example, falls short of some of the demands of the Organization for Economic Co-operation and Development - a club of large, rich economies - on small countries for tax reporting. Little wonder that it hosts mailboxes for more than half of U.S. corporations and 60 per cent of Fortune 500 companies. The vast majority of U.S. states do not require - let alone verify - ownership information when a company is formed. Companies need to provide almost as much information to register a web address."
"It is hypocritical of rich countries to rail against offshore tax havens, while failing to do the maximum to penalize foreign tax avoiders within their own borders. Countries with a large population and tax base will always have a stronger argument against small countries that attract tax avoiders, but it is best to lead by example."
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