Minister Wary Of Obama

[Skeddan]

This article in LegalWeek.com is worth a read (by Stephen Platt, chairman of BakerPlatt Group - quite an interesting law firm in this area).

 

In light of some of Senator Levin’s findings, few would disagree that the existing laws on tax evasion need to be strengthened. And this Bill, if enacted, may well help to reduce the incidence of what is clearly a problem. Unfortunately, it goes too far. It is anti-competitive and will prevent legitimate individuals from utilising the services of legitimate financial services. It combines the creation of an incredibly draconian regime with the almost arbitrary blacklisting of countries. The automatic listing of 34 jurisdictions, made with no clear justification or reasoning, highlights the whimsical nature of some of the thinking behind the Bill.

 

There are dangers in this approach. Many reputable centres, including Jersey, Guernsey and the Isle of Man, have made big strides over the past decade to meet international standards and dispel toxic business. They have been praised for doing so by numerous international standard setting bodies. Sadly, there is nothing in the Bill that recognises their efforts. Indeed, it does quite the opposite. A far better approach would be to give well-regulated centres the recognition they deserve, holding them up as role models to inspire others.

 

http://www.legalweek.com/Articles/1168683/...ax+targets.html

 

Also note that Guernsey sent a delegation to the US about this in July last year (what has IoM done?)

 

The last paragraph - about Delaware is also worth taking note of:

One thing that particularly stands out is the absence of any mention within the Bill, or in the Senate Subcommittee report that preceded it, of the criminal abuse of the Delaware system of limited liability company incorporation — which is governed by rules on disclosure of beneficial ownership that were outlawed in the Crown Dependencies 10 years ago. This deepens suspicion that the Bill is not in fact motivated by a desire to stamp out the abuse of offshore financial services, but instead by America’s need to exercise more control over large pools of foreign development capital. Is it mere coincidence that the Bill has gathered momentum as the US economy has bombed?

[Sebrof]

Interesting that so many of the countries listed are British, or ex-British. Also, the list includes Switzerland, as well as four EU countries.

 

I can't see that list surviving into legislation without a few changes.

 

S

[Albert Tatlock]

And now the second front opens: Obama's economic team takes shape

 

Lawrence Summers

 

"The US should take the lead in promoting global co-operation in the international tax arena. There has been a race to the bottom in the taxation of corporate income as nations lower their rates to entice business to issue more debt and invest in their jurisdictions. Closely related is the problem of tax havens that seek to lure wealthy citizens with promises that they can avoid paying taxes altogether on large parts of their fortunes. It might be inevitable that globalisation leads to some increases in inequality; it is not necessary that it also compromise the possibility of progressive taxation. Second, an increased focus of international economic diplomacy should be to prevent harmful regulatory competition."

 

Timothy F. Geithner (Summers was his mentor)

 

Peter R. Orszag

 

Christina Romer

 

Woohoo! Independence here we come!

[Skeddan]

Woohoo! Independence here we come!

Why do you say that?