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Tax Havens

Money Laundering Using Tax Havens

Money laundering is the process of transforming the profits of crime and corruption into ostensibly ‘legitimate’ assets, and the hiding of income/wealth from Governments to avoid taxation.
Money laundering is the process of transforming the profits of crime and corruption into ostensibly ‘legitimate’ assets, and the hiding of income/wealth from Governments to avoid taxation.

Tax Evasion - Illegal Use of Tax Havens Amounts to $6 Trillion

Around four-fifths of money in offshore bank accounts is there in breach of the tax laws of other countries.

Paying Higher Interest Rates to Attract Foreign Investment

As developing countries are higher risk than developed countries, they must pay higher rates of interest to attract foreign investment.

Domicile Structured Finance Entities

Structured financial entities are established by financial institutions (banks and companies) to sell their debt securities to investors.

Domicile Captive Insurance Businesses

A captive insurance business is an insurance company that is wholly owned and controlled by the insured.

Domicile Hedge Funds

Eighty percent of the world’s hedge funds worth US$800 billion are domiciled in the Cayman Islands.

Trading with the Tax Haven’s Local Population

Many companies including Telstra have established entities in tax havens as they operate trading businesses in those tax havens servicing the local population. 

Delaware's Flexible Corporate Laws Attract Business

Businesses choose Delaware simply because of their flexible corporate laws, highly respected Court of Chancery, and a business-friendly State Government.

Tax Havens Require Political and Economic Stability to Flourish

Without political and economic stability, no amount of tax inducement can bring in outside investors. The political and economic stability of tax havens like Switzerland are a magnet for huge capital inflows.

Lack of Exchange Controls Offer Investor Confidence

The key reason Hong Kong is among the world’s largest financial centres is that it doesn’t have any currency controls.
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