Harbours of Resentment

Harbours of Resentment

I came across a really interesting article in FT talking about offshore jurisdictions and the pressure they are under because of the worsoning economic climate. I must say it is of personal interest as I’m based in the Isle of Man, but it’s also interesting to see how major economies around the world have started trying to look at their finances and trying to plug leaks. The article calls the UK’s threats towards the Isle of Man as ..

a sign of the growing hostility to the tiny states and islands around the world that harbour an estimated $6,000bn (£3,895bn, €4,725bn) of offshore assets. After months of financial crisis and banking scandals that rocked Liechtenstein and Switzerland, the world’s most powerful countries have lost patience.

An interesting part of the article is a reference to Delaware, a US state with much less transparency than most offshore jurisdictions:

Delaware company agents advertise the state as allowing even greater secrecy than offshore tax havens. “The Delaware LLC provides the anonymity that most international jurisdictions do not offer,” claims one agent website quoted by the task force.

So, for example, if a company selling Wilmington NC real estate was incorporated in Delaware, it has huge tax reporting flexibility without having to go offshore.

If you find this interesting you can read the complete article: Harbours of Resentment

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