US turns into perfect offshore tax haven
The US is gradually turning into the world's best offshore money haven. As the Bloomberg agency notes, in September of last year the managing director of Rothschild & Co., Andrew Penny, published a detailed report in which he recommended that the richest people of the world transfer their assets to the United States to exempt their wealth from taxes and hide from supervisory authorities.
According to some experts, the US has become 'the new Switzerland', because after years of criticizing other countries for helping wealthy Americans with hiding money in offshore havens, the United States itself suddenly became an excellent keeper of the secrets of wealthy foreigners, allowing Penny to note that it "actually became the largest tax haven in the world."
This is connected, in particular, with the fact that American banks are refusing to move to the new disclosure standards, creating a new fast-growing capital market that attracts wealthy people from around the world, which is already used by London lawyers and Swiss trusts, transfering the accounts of their clients from the Bahamas or the Virgin Islands to Nevada, Wyoming and South Dakota.
"The United States, which gladly scolded the Swiss banks, now, as paradoxical and unnatural as it may be, has turned into a bastion of bank secrecy," an employee of Zurich law firm Anaford, Peter Kotorcheanu, wrote in an article in one of the latest issues of the Legal Magazine, Interfax reports.
Rothschild & Co. itself has already established a trust company in the city of Reno, in western Nevada, which now receives the money of wealthy foreigners from various offshore tax havens, including the famous for this Bermuda Islands, which now, in contrast to companies in the US state, must comply with new international requirements on disclosure of information for tax purposes.
The head of the Trident company from South Dakota, Alice Rocar, admitted that she was very surprised by how many rich people are eager to transfer their money from Switzerland or the Cayman Islands to the United States, largely due to the fact that South Dakota is one of the US states that are actively promoting low tax rates and banking secrecy.
However, experts point out that despite these trends, the "classic" offshores will not lose their value. According to Professor of Economics at the University of California, Gabriel Tsukman, who carried out relevant research, Swiss banks hold about 1.9 trillion dollars, of which account holders do not tell the authorities in their homeland, Interfax writes.
The director of the IBDA program, doctor of economic sciences, Professor Mikhail Portnoy, noted in an interview with the correspondent of Vestnik Kavkaza that a flow of capital to the United States has been observed for a long time. "You know, unfortunately, both in the world and in the United States, there is no clear understanding of why capital rushes there. And capital rushes there only because it's the biggest, the most developed economy in the world, which is capable of taking so much capital. So, you know, there are always two sides to this issue. On the one hand, all of these funds, with the exception of direct investments, which represent the purchase of property, are debt instruments. And then debt arises, you know. But on the other hand, any debt is a repository of savings for capital. So the United States is the world's largest repository," he said.
At the same time, the expert reminded, that in the world, "for the last 20 years, there has been a struggle with offshores, because they are used for avoiding high taxes in a state with less taxes. And any state views this negatively, because in this way they are deprived of tax revenues. That's why they are continuing this fight," Mikhail Portnoy concluded.
In his turn, the chairman of the National Currency Association (NCA), Dmitry Piskulov, expressed the view that the article published in Bloomberg overstates and exaggerates.
"The US has always been strict with taxes. Their tax service strictly monitored the observance of tax legislation, the payment of taxes. In fact, they fine such companies as, for example, Rothschild Bank, which helped clients hide money. It was fined by the US Department of Justice, because it helps its clients to hide income abroad, by opening about 300 accounts that belonged to American taxpayers, for the sum of 1 billion dollars, and was forced to pay 11 million dollars," he gave an example.