What makes the Cayman Islands a “tax haven”?
In: Economics
Mostly it is about jurisdiction, courts in other countries can’t subpoena records or freeze funds without going through diplomatic channels. This allows people to outright break the law and evade taxes, or work in a grey area where the tax agency has to take their word for it and they still have access to their money in case of a dispute. Possession being 9/10th of the law and all that.
The Caymans and other tax havens usually have the following properties:
* banking privacy laws that restrict cooperation with foreign governments
* little or no taxes on depositors
* few regulations on who can open an account or how money gets moved around
* economic and political stability
In exchange, you will usually see lower interest rates, higher minimum deposits, and higher fees than with a domestic bank.
They have low taxes, looser business regulations, and allow foreign businesses to incorporate within their country. Their banks are also fairly resistant to cooperate with foreign nations investigating tax fraud so are less likely to turn over information when it is requested.
They have low taxes, looser business regulations, and allow foreign businesses to incorporate within their country. Their banks are also fairly resistant to cooperate with foreign nations investigating tax fraud so are less likely to turn over information when it is requested.
They have low taxes, looser business regulations, and allow foreign businesses to incorporate within their country. Their banks are also fairly resistant to cooperate with foreign nations investigating tax fraud so are less likely to turn over information when it is requested.
Latest Answers