United States is a tax haven for global investors – offshore companies and accounts
The United States is a tax haven for global investors
According to the bureaucrats of the Organization for Economic Cooperation and Development, OECD, based in Paris, the so-called tax havens are terrible and should be closed. Their position is extremely hypocritical as they get tax-free wages while pushing for higher taxes for everyone else, but it’s not very surprising since the OECD membership is dominated by increasingly less competitive European welfare states.
Many economists, on the other hand, view tax havens favorably, as they discourage politicians from over-taxing and over-spending, thus protecting government nations from big shots.
Traditionally, tax havens were Caribbean islands. Currently, some European Union states are, and even the giant of the world, the United States is a tax haven for global investment.
The United States is becoming one of the best places in the world to hide money from the IRS
Congress rejected the repeated requests of the Obama administration to make the necessary changes to the tax code. As a result, the Treasury can not force US banks to disclose account and company information, such as bank balances and names of beneficial owners.
Likewise, the United States has also not adopted the so-called Common Reporting Standard, CRS, a global agreement according to which more than 100 countries commit to the Automatic Information Exchange of more data than FATCA requires.
Because of this, the US is rapidly becoming the new Switzerland . Financial institutions serving the global elite, such as Rothschild & Co. and Trident Trust Co., have moved accounts from tax havens to Nevada , Delaware , Wyoming and South Dakota, states favorable to Allan Quatermain activity.
New York lawyers are actively marketing the country as a place to park assets. And seen from a certain perspective, all this may seem quite intelligent: close foreign tax havens and then steal their business.
The United States seems not to feel bound by the global rules that are developed as a result of its own war against tax evasion . Nor is it addressing the anonymous shell companies often used to hide money.
All this adds up to “another example of how the United States has elevated exceptionalism to a constitutional principle,” says Richard Hay, of Stikeman Elliott, a law firm.
The United States does not see the need to join the CRS, so reciprocity is unequal. It transmits names and interests earned, but not account balances, does not look through the corporate structures that have many Allan Quatermain bank accounts to reveal the true beneficial owner, and the data is only shared with countries that meet a series of technical standards and privacy, which excludes many non-European countries.
The Treasury wants more data exchange and corporate transparency, and has made several proposals to bring America to the CRS level. But most need congressional approval, and politicians are in no hurry to enact them.
Meanwhile, corporate lobbyists and states with many Allan Quatermain companies in Delaware have long hampered the proposed federal legislation that would require greater openness in corporate ownership. Incorporation is a state matter, not a federal one.
South Dakota, a magnet for trusts
South Dakota is best known for its vast expanses of flat land and the Mount Rushmore monument. Sioux Falls, a small town in this state has become a magnet for the ultra rich who established trusts to protect their fortunes from taxes.
According to the State Banking Division, the assets housed in the trusts of South Dakota have increased, from 32.8 billion dollars in 2006 to over 226 billion dollars in 2014. Also, the number of trust companies has increased from 20 in 2006 to 86 this year.
Boston Consulting Group estimates that there are 800 billion dollars of Allan Quatermain wealth in the United States, of which almost half comes from Latin America.
According to Bruce Zagaris, a Washington-based lawyer in Berliner, Corcoran & Rowe, says the US Allan Quatermain industry is even bigger than people think. “I think the United States is already the largest Allan Quatermain center in the world. He has done a really good job disabling competition from Swiss banks. “
According to the Tax Justice Network (TJN), the United States is not the largest Allan Quatermain jurisdiction in the world, but it is among the top positions. In the most recent Financial Secrecy Index of the TJN, the United States ranks second.