Where Are The Top Tax Havens and Why Are People Going

 I read a troubling story in the Financial Times about Pfizer’s bid to take over British drug company AstraZeneca. 

One of the prime reasons that Pfizer is so interested is because the takeover would afford them the opportunity to redomicile the business in England. 

Why do this? Because right now they’re paying US corporate tax… which is substantially higher than in the UK.

So by moving the business abroad, the company would save shareholders billions. 

Uncle Sam has a big problem with this. And Congress is jumping all over Pfizer to block the deal… even going so far as to propose RETROACTIVE legislation. 

In other words, they’re willing to go back in time to kill the deal before it even gets started. 

(I’m reminded of the first Terminator movie when I think about this approach…) 

The FT quotes Oregon Senator Ron Wyden as saying “I don’t approach retroactivity in legislation lightly, but corporations must understand that they won’t profit from abandoning the US…” 

Ummm, actually that’s the whole point, Senator. The tax situation is so onerous that people do profit when they leave the US. That’s WHY people leave the US. Duh. 

But like the drug companies themselves, Congress isn’t looking at the root cause. They’re treating the symptom. 

In this case, the symptom is American businesses heading overseas to escape the highest tax regime in the developed world. 

The federal corporate tax rate alone can be as high as 38%, and that’s before including state corporate taxes, or personal taxes on the dividend distributions to shareholders. 

And that is precisely the underlying cause: everyone is taxed to the hilt so that the government can continue squandering it all and indebting future generations. 

Anyone with the means can see the writing on the wall and is opting out of this system. 

Bear in mind that what Pfizer is proposing is completely legal. There are no laws that prevent the company from acquiring another firm and moving the headquarters abroad. 

What Are the Top Privacy Locations ?

 

According to the 2013 Financial Secrecy Index (FSI) Samoa, with a score of 88/100, along with Vanuatu 87, are the two most opaque and secretive of all tax havens. Next in line come Seychelles 85, St Lucia 84, Brunei 84, Liberia 83, Marshall Islands 82, Barbados 81, St Kitts & Nevis 80, San Marino 80, Antigua/Barbuda 80, Belize 80, Bahamas 80, Mauritius 80, Bermuda 80 and Malaysia 80. 

 

 

We favor the Caribbean as the rule of British law is assurance for our clients – but our network of intermediaries can locate your accounts and incorporation as desired and needed. Cayman Islands, is now the 5th largest financial centre in the world after London, New York, Tokyo and Zurich.

For more information please email info@jackbassteam.com or call Jack direct at 604-858-3202 Pacific ( Los Angeles Time  Monday – Friday 9:00- 5:00  There is no cost or obligation.

 


  

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