The offshore financial centres have been forced in recent years to review almost every aspect of the ways in which they operate in response to the international anti- money laundering laws and initiatives by major economies such as the E.U. and the U.S.A. to increase co-operation in the areas of preventing tax avoidance and tax evasion. These pressures continue and it is clear that the only way forward is for these centres to eliminate, as a priority, all forms of discrimination between different classes of taxpayer. Some jurisdictions have taken active steps to secure their futures, but some have difficulty in doing so and some are having to give up the struggle.
Gibraltar's tax haven status to be scrapped
Gibraltar is an example of a territory with a discriminatory tax regime. A non-resident may form a company there, which pays an annual flat tax of between ?225 and ?300. The same company owned by a local resident may pay tax at 35% on its profits. Gibraltar is a member of the E.U. and a dependent territory of the U.K. It was recently announced that Britain, threatened by Court action, has given into E.U. demands to abolish the special tax regime.
The Gibraltar exempt company regime will accordingly close as from July 2006 and will be abolished altogether in 2010. In the intervening period the number of companies benefiting from the scheme will be capped at 8464 and any company, which changes ownership, will lose the benefit immediately.
Jersey
Jersey is another territory, which may encounter problems. It relies heavily on the financial sector for its revenue, much of which is generated from a flat corporation tax on companies, owned by non residents, but conducting their trading activity elsewhere, in much the same way as Gibraltar.
The Island is considering introducing a goods and services tax and/or a zero rate corporation tax as part of its solution to the problem. In the meanwhile the debate goes on. The local newspaper has reported that some fund managers would like to join the E.U. and a former Economic Advisor to the government has been quoted as saying that any clamp down on its tax haven status would force the Island to consider joining. In more colourful language, one of the members of a local professional body is reported as having said that the jurisdiction would "self-implode within three years" because "it is "staggeringly dependent on corporation tax".
Problems Onshore
It is not only the offshore centres, which are feeling the pressure. The E.U. is attacking the Dutch International Financing Activities scheme and the Belgian co-ordination centres scheme. In the U.S. the I.R.S. has forced Mastercard to supply records of transactions of U.S. residents with accounts in Antigua, Barbuda, the Bahamas and the Cayman Islands. The government has entered into exchange of information agreements with these territories and is negotiating agreements with Panama and the British Virgin Islands.
The Chesterfield Group provides a full range of trustee, and corporate advisory, formation and management services and invites enquiries. More particulars can be found on our web-site http://www.chesterfield-management.com REF=CH3EZ
cleaning service near Bannockburn ..Fuel costs seem to rank high in surveys of US... Read More
On June 16, 1972, a security guard at the Watergate... Read More
As of late steroid use in sports has been the... Read More
Absolute power corrupts absolutely. Men desire power. Give power to... Read More
The Palestinian Fatah Movement is doing whatever it can to... Read More
The offshore financial centres have been forced in recent years... Read More
It looks overall like the liberals are advocating for no... Read More
For years we've suffered under recession, prompting us to ask,... Read More
This brings to our consciousness, issues concerning the ever rising... Read More
1. Why is it that no one seems to notice,... Read More
Heaven, Hell, or some sort of Purgatory.I cannot seem to... Read More
After the dance the piper must be paid. To help... Read More
With elections on the horizon and Blair looking tired and... Read More
We know that the International Terrorists like the idea of... Read More
Often we see protests at the sites of global leader... Read More
Land Mines have been one of the most evil left... Read More
Recently in Professional Builder a cover article discussed how the... Read More
The plight of whistleblowers ? those employees who sound the... Read More
Those of us hundreds of miles from ground zero sat... Read More
Handing over power to Vladimir Putin in 1999, Boris Yeltsin... Read More
Expected new applications for Mexican trucks to enter the US... Read More
In 1966, Dr. Carroll Quigley, a professor of history at... Read More
If a farmer plants the same crop three seasons in... Read More
The CBR taxes the Pakistani source income of nonresident individuals... Read More
Today we wish to examine a fallacy, or error in... Read More
pet-friendly home cleaners Mundelein ..As we reel from the news of the recent bombings... Read More
The Federal Trade Commission has very important Anti-trust Laws. They... Read More
Possible UAV materials are infinite: Foam, Composite, Balsa Wood, Plastic,... Read More
THE ROSICRUCIAN COUNCIL OF THREE:A Thelema/OTO leader who became a... Read More
Iran has threatened to raise America's fuel prices again. They... Read More
How do you feel about Terminator Seeds from Monsanto? I... Read More
The use of homosexual men in the area of espionage... Read More
A visitor to Moscow would be immediately struck by the... Read More
Here is an interesting thought; Corn to make Plastic An... Read More
Forest Vegetation Simulations for Fire Prevention, Healthy Forest and Saving... Read More
The Connecticut Conference of Municipalities (CCM) is interested in the... Read More
Yes, Bush is two-faced. The two sides of the faces... Read More
I'VE ALWAYS ARGUED THAT ECONOMIC ILLITERACY IS VERY COSTLY.This is... Read More
There are many types of fuels besides that gasoline we... Read More
Recently the Los Angeles Transit workers are on Strike and... Read More
September 11, 2001 could have been prevented. We could have... Read More
Previously Senator Dick Armey and his staff in 2000 to... Read More
Recently I got to talking with a gentleman at a... Read More
Judgment and detective work requires thinking about possibilities. One of... Read More
We learned some lessons in these last few wars. For... Read More
Please read through this quick thought and discussion as if... Read More
Legislation was introduced into Congress this week that would establish... Read More
It can be dangerous to engage in free speech. This... Read More
The notion that local governments should have almost total monopoly... Read More
IT'S NO LONGER NEWS THAT CHINA IS BECOMING A MAJOR... Read More
Political |