United States as a tax haven

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The United States "is effectively the biggest tax haven in the world"

Andrew Penney,

Rothschild & Co.[1]

In 2010, the United States implemented the Foreign Account Tax Compliance Act; the law required financial firms around the world to report accounts held by US citizens to the Internal Revenue Service. The US on the other hand refused the

Organisation for Economic Co-operation and Development, alongside Vanuatu and Bahrain.[2]

This means the US receives tax and asset information for American assets and income abroad, but does not share information about what happens in the United States with other countries. In other words, it has become attractive as a tax haven.[1]

Extent

The

Sioux Falls, saying: "Cayman was slammed in December, closing things that people were withdrawing ... I was surprised at how many were coming across that were formerly Swiss bank accounts, but they want out of Switzerland."[1]

A 2012 study by various US universities showed that the US has the most lenient regulations for setting up a

1209 North Orange Street) is listed as the headquarters for at least 285,000 separate businesses[5] due to Delaware's desirable corporate taxes and law. As of 2016, it was estimated that 9 billion dollars of potential taxes were lost over the past decade, due to the Delaware 'loophole'. Both Hillary Clinton and Donald Trump have firms registered in North Orange Street,[6] and lawyers, trust companies and financial firms including Rothschild & Co are moving offshore accounts from locations such as Switzerland and the Cayman Islands into the US to take advantage of the country's loose regulations, calling it the "new Switzerland" (see Banking in Switzerland).[1]

Mark Hays of

royalty income. However, the LLC is more popular and often less expensive in states such as Wyoming, Nevada and Oregon. Approximately 668,000 anonymous LLCs are registered just in those three states.[8]

Parts of the country serve as havens for others, and for

front company.[10]
: 334 

Offshore tax avoidance

Main article:
Tax avoidance in the United States

Pandora Papers, 2021

Main article: Pandora Papers

The October 2021 release of the Pandora Papers revealed details of a number of non-U.S. figures who have used U.S. tax haven services. These include 35 world leaders and over 100 billionaires, celebrities, and business leaders.

See also

References

  1. ^ a b c d Drucker, Jesse (January 27, 2016). "The World's Favorite New Tax Haven Is the United States". Bloomberg Businessweek. Retrieved April 23, 2016.
  2. ^ a b c d e Swanson, Ana (April 5, 2016). "How the U.S. became one of the world's biggest tax havens". Washington Post. Retrieved April 23, 2016.
  3. ^ Yasuo Awai (23 April 2016). "A third of Panama Papers shell companies set up from Hong Kong, China". Nikkei Asian Review. Archived from the original on 15 May 2016. Retrieved 23 April 2016.
  4. ^ a b Michael Findley, University of Texas at Austin; Daniel Nielson, Brigham Young University; Jason Sharman, Griffith University. "Global Shell Games: Testing Money Launderers' and Terrorist Financiers' Access to Shell Companies". {{cite journal}}: Cite journal requires |journal= (help)
  5. ^ Leslie Waynejune: How Delaware Thrives as a Corporate Tax Haven, The New York Times, June 30, 2012
  6. ISSN 0261-3077
    . Retrieved 2016-04-25.
  7. ^ Drucker, Jesse (April 5, 2016). "Panama Has Company as Bank-Secrecy Holdout, as U.S. Offers Haven". Bloomberg. Retrieved May 2, 2016.
  8. ^ a b "In the City: Shady sunspots". Private Eye. No. 1416. April 15, 2016. p. 41.
  9. ^ Melsen, Brett (August 31, 2015). "Delaware Division of Corporations 2014 Annual Report". www.delawareinc.com. Delaware Division of Corporations. Retrieved April 24, 2016.
  10. ^
    ISBN 0-8248-1678-1
    .

External links
Further reading
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