From today's N.Y. Times. The latest data leak of 2.5 million files of off-shore accounts and shell corporations is reverberating around the world. In a nutshell, most of what was uncovered involved tax avoidance. Which is LEGAL almost everywhere . But it was the "who" more than the "what". Namely numerous high government officials in Europe and Asia. But more importantly it was the "where". Places that were formerly considered safe and quintessentially secretive and protective of um, er, investor privacy are now no longer safe from prying eyes. Some $21 TRILLION in assets are currently in accounts in the Cayman Islands, British Virgin Islands and Liechtenstein. The major selling point for these and other off-shore havens was secrecy. Oddly, very little money laundering or outright tax evasion was uncovered.
There were about 4,000 Americans ( including the ever popular ex-pat Denise " Kneepads " Rich ) whose files were made public. Many a Hollywood and D.C. celeb supportive of higher tax rates on the dirty, stinking, filthy rich has such an account. Surprise, surprise. So did the former Budget Minister for Francois ( 75% ) Hollande as well as other European ministers and officials currently presiding over austerity policies in their respective countries.
The point is that without a meaningful guarantee of secrecy, who needs these off-share havens? Why not just put your money into triple tax free Muni - bonds ?



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