Thursday, July 19, 2012

A Guide to Tax Havens: ‘Cause Romney Shouldn’t Have All The Fun




Seriously folks….One of the benefits of being rich — parking your investments and/or registering your corporation in an offshore tax haven — is so lucrative, so enduring as a money-saving technique, that it shouldn't remain a secret known only to Mitt Romney and other financial sophisticates. So, in the interest of public service, Daily Intel presents the benefits and drawbacks of ten widely used tax havens:

SWITZERLAND  PRO: Switzerland is one of the most well-established tax havens in the world, with laws prohibiting bankers from releasing details about their clients dating back to the eighteenth century. The country's long-standing tradition of neutrality, political stability, and strict bank secrecy laws have made the Swiss bank account a favorite accessory of elite tax evaders and Bond villains alike.  CON: Being the poster child for tax havens makes the country a bigger target, and the Hollywood stereotype of the ultradiscreet Swiss bank is becoming less true every year. Today, according to Swiss financial consulting firm Micheloud & Cie, the safe deposit boxes at Swiss banks aren't even retrieved by a robotic arm activated by a triangular key. What fun is that?

AUSTRIA  PRO: Austria has no inheritance tax, and it gives tax breaks to citizens who live abroad at least half of the year, which is likely why American songwriter/socialite Denise Rich, who had dual citizenship in Austria, recently renounced her ties to the United States. (Although she's moving to London, somehow dumping her U.S. passport was necessary to "be closer to her family.")
CON: In 2009 Austria managed to get itself removed from the Organization for Economic Co-operation and Development's "grey list" of tax havens by signing agreements to share banking information with other countries when requested, so this may not be the place for those who place a high value on financial discretion.

LUXEMBOURG  PRO: Apple routes all of its iTunes sales through a subsidiary in Luxembourg, reportedly because the small European nation has promised it and other giant tech companies a tax break if it does so.  CON: Probably won't work if you're not Apple…..

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