Tax Havens: the end is near

By in

smallThe use of Tax Heavens in international tax planning and identity protection will be moderated due to a pressure from G8 and the EU. The widespread use of Tax Haven jurisdictions is attributed to the low cost of incorporation and maintenance of legal entities, and a limited access to information on directors and shareholders of those legal entities. According to a report published by ActionAid, nearly 50% of investments in developing markets are made through Tax Havens. There is a growing worldwide trend to limit the use of Tax Haven jurisdictions by preventing the opening of bank accounts for them in Switzerland and Singapore. Other World Financial Centres will most probably follow the same trend. There are rumours that the EU will push for legislation to stop the opening of new bank accounts for Tax Havens in European banks, and will over time close existing bank accounts for offshore companies from Tax Haven jurisdictions. Among the most popular Tax haven jurisdictions are The Bahamas, Bermuda, The Cayman Islands, The Netherlands Antilles, Panama, Belize and The Seychelles.