The Finance Thread....

[elginCity]

Would that theoretically mean the end of tax havens?

Not unless they also go after the private wealth, the secret offshore trusts in a tax-free wrapper.

 

[angelic upstart]

Not unless they also go after the private wealth, the secret offshore trusts in a tax-free wrapper.

I meant the Caymans et al, and for businesses.

 

[elginCity]

I meant the Caymans et al, and for businesses.

Potentially, I guess. Talk is of corporation tax being charged where the customers are based, rather than where the business is registered. I don't know of any other reason why a company should choose to remain registered in the Caymans if this ever comes to pass, Al is our corporate tax wizard though, he would know of any other angles businesses might be able to work in a tax-free environment.

There are private trillions hoarded by the super-rich offshore, if that is allowed to continue, suspect the Caymans would remain a tax haven, just no longer a business tax haven !

 

[Grecian2K]

I don't know of any other reason why a company should choose to remain registered in the Caymans if this ever comes to pass

Because the weather's much nicer there?

 

[Grecian2K]

What has (and still does) infuriate me was the indecent haste with which some of those rabidly pro-Brexit squillionaires ex-patriated their own wealth (and in some cases whole businesses) to foreign climes once the true reality of leaving the EU began to dawn. (Yes Messers Ratcliffe, Dyson etc, I'm thinking of YOU!)

A definite case of the "Marie Antoinettes" methinks.

 

[Alistair20000]

Potentially, I guess. Talk is of corporation tax being charged where the customers are based, rather than where the business is registered. I don't know of any other reason why a company should choose to remain registered in the Caymans if this ever comes to pass, Al is our corporate tax wizard though, he would know of any other angles businesses might be able to work in a tax-free environment.

There are private trillions hoarded by the super-rich offshore, if that is allowed to continue, suspect the Caymans would remain a tax haven, just no longer a business tax haven !

Corporate residence is all down to the place where central management and control takes place so if you have a Board that meets in the Caymans and takes the top level decisions there Corporate taxes elsewhere are avoided. It is a lot more complicated than that of course but in essence if the right stooges play act according to the script written by clever lawyers and tax accountants the plodders at HMRC cannot keep up. Corporation Tax is not fit for purpose so it would be better to tax the turnover of companies in the country where it is earned. All that said, whatever tax is levied on corporates is passed on to customers so that it is you and I that foot the bill.

A lot of so called offshore tax planning is no more than blatant evasion where HMRC does not pick up non disclosure. I met a particularly obnoxious count who was part of a buying team of a business of a client a while back. He was boasting that he makes a million pounds a year but £950,000 is billed out to the Isle of Man for management services and escapes U.K. tax. Now this pile of turd is caught by all manner of tax avoidance legislation but if HMRC cannot police it what is the bleddy point

Avoidance of tax through trusts is a different issue and even harder to tackle with no mechanism to apply a turnover tax.

And yes, the real attraction of the Caymans and similar places is just the tax avoidance.

P.S. You may detect that I absolutely detest all this crock of sh*te

 

[Oldsmobile-88]

Because the weather's much nicer there?

I have the Members song...
‘Off Shore Banking Business’ from 1979 going through my head now

Great lyrics in that composition...

 

[Oldsmobile-88]

https://twitter.com/i/web/status/1381157072935522304

 

[elginCity]

Proper scrutiny and accountablity. Should be on that other thread 'Things you don't see any more'.