After information was leaked regarding thousands of overseas companies from accounts held in Panama, the offshore industry has come under scrutiny with experts asking why so few US citizens were involved in the papers.
With the US being one of the largest financial hubs in the world, it is thought that US citizens are hiding their money much closer to home. Within the US, Delaware houses around 950,000 companies, which the equivalent to almost one for every person residing there.
Delaware is only one of the four US states being used for potential offshore tax evasion. Others being Nevada, Arizona and Wyoming. All four states have been criticised for their relaxed attitude towards financial regulation, as many of the companies being suspected of being shell companies.
Transparency International, an anti-corruption initiative that actively campaign for global reporting standard state that the situation in the US is far from desirable, describing Delaware as being a “international crime haven.”