So, living in a tax haven there are a lot of countries and the EU especially throwing s**t at us. I feel that there are no problems with us being a tax haven.
Why? One because we are a very small country with a bit more people than a Town in Wales. Therefore not needing to bring in much tax revenue to support infrastructure and etc.
We don’t have a military the size of many big countries like the US, UK and other major countries partially because we are a British Territory and if something serious happens we will be supported by the UK.
We don’t have universal healthcare and I feel like the need for it isn’t really there you get health insurance that you can get through government backed plans or private insurance you do still have to pay for it, but we aren’t getting taxed a National Insurance tax on top of a 20 to 45 percent tax rate.
Yes, there are a lot of complications with AML/ATF complications and the government has been getting stricter in that sense.
A large percentage of our work industry is in the finance related sector due to many insurance and related companies setting up here.
Do you see being a tax haven as unfair?
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I can see how tax haven are perceived as unfair and to a certain extent I also see how it is unfair. When smaller countries can price out larger countries because they need less to support their citizens and if they can just attract a few corporations then they can meet their budgets. I view this as unfair because corporations should be willing to support the municipalities where their customers and employees live.
Now on the other side I think it is just as important that governments charge what is a generally considered a fair tax rate and limit spending. And I think a lot of the governments that get upset about tax havens need to take a long look in the mirror.
P.S. nice user name
BVI? what's it like to work there? hours/comps?
Lol no I dont live in BVI. Hours are like most places Big 4 Audit and Tax departments are all the same during busy seasons. From what I know. It is definitely more relaxed than other big financial districts.
No, what you reap is what you sow. These countries know if their estate tax is too high, millionaires & billionaires will move. French president Hollande imposed a 75% supertax and thousands of millionaires & billionaires renounced other countries citizenships. Jim Ratcliffe Britain's richest man recently moved to Monte Carlo because of the British's high tax.
So I think this is where tax havens are not moral though. Monaco is small and doesn't require nearly the same amount of capital that England requires and can tax laws to attract more essentially pricing out larger nations. Just to play devils advocate.
No England's estate tax is too high. When's the last time you heard a billionaire from America moving because of taxes? If they weren't so high, maybe they won't move. You see it as not moral, I see it as a reality. Billionaires aren't under no obligation to stay, where they made their money.
you don't need to live in a tax haven to avoid taxes...just start a "church" its free...you pay zero taxes if you follow these IRS rules, which are easy to do.
These attributes of a church have been developed by the IRS and by court decisions. They include:
Distinct legal existence Recognized creed and form of worship Definite and distinct ecclesiastical government Formal code of doctrine and discipline Distinct religious history Membership not associated with any other church or denomination Organization of ordained ministers Ordained ministers selected after completing prescribed courses of study Literature of its own Established places of worship Regular congregations Regular religious services Sunday schools for the religious instruction of the young Schools for the preparation of its members The IRS generally uses a combination of these characteristics, together with other facts and circumstances, to determine whether an organization is considered a church for federal tax purposes.
https://www.irs.gov/charities-non-profits/churches-religious-organizati…
Just think...if Scientology is a church, and tax free (federal, state, local....no property tax..nada, zip, zilch)...then so can you.
Just a guess which country where you are from Liechtenstein, Luxembourg, Latvia, Monaco or Estonia. There is absolutely nothing wrong with tax havens. There is nothing wrong with putting your money somewhere else if you get to keep all of it. "Why put all your eggs in one basket" ?Unfortunately, the U.S.A is one of three countries that has a citizenship tax where you need to pay world-wide income no matter where you live as long you are a U.S citizen.
P.S I was wrong and didn't read you live in a British territory, sorry for my mistake.
This is one of the things I'm trying to get to grips with as I'm trying to get EU citizenship while already holding US citizenship.
I believe you get up to a certain amount to where you have to pay us tax and i think it is around 100k and then you pay tax on the difference above that 100k. You could renounce your citizenship.
EH it is just sour grapes from fucking morons who believe they are entitled to other peoples money. The primary problem with government is they have monopoly on force.
So you're an anarchist?
Personally, I am a user of tax havens but I do so strictly by the book. In Canada, offshore companies we own are taxed at that country's rate so we can take full advantage of overseas tax rates unlike Americans. The only caveat being that we pay a repatriation tax. This works well because I can compound $ super fast and then am happy to pay tax on the draws I take personally as they aren't really that high relatively speaking.
It's a competition and if you're a small shitty island with no resources or human capital the easiest way to attract investments is to provide a way for others to escape taxes in their home country. So I don't think it's unfair to be a tax haven.
However, you're also unintentionally undermining the trust people put in advanced societies. Governments provide a lot of essential services to maintain and start a business. Trust in capital markets, trust in the law, trust in police forces, infrastructure, education, trade deals, etc... These are absolutely essential for your business and no matter how much risk you took, or how hard you worked, how genius you are, without these contributions offered to you practically for free, you and your company would've been nowhere. All citizens contribute to this form of trust by paying their taxes and being a decent human being.
I'm not going to make a judgment about whether it's fair or unfair to avoid taxes. I believe it's human nature to try to keep as much as possible of what you earned. And if you've found some type of loophole by being savvy, props to you. However, if you have received all of the advantages mentioned above for your lifetime and you return the favor by evading taxes, don't be surprised that at a certain point the people/government will want to see the fruits of their investments. Force will always trump politics and politics will always trump economics. If at a certain point, people or countries will have enough (whether that's rational or not) and decide to force your tax haven country into paying back what it owes. Or simply capturing your island just because they can... Could you really blame them?
Thinking about what's fair and unfair is generally a bad exercise because it's rarely applicable to reality.
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