Offshores Under Fire Again
There doesn’t seem to be a week that goes by without some UK politician having a go at the Crown Dependencies and other offshore jurisdictions. This is despite many of them appearing on the OECD whitelist and for that matter having more open information sharing agreements than the UK, so why the constant attacks?
It seems that no matter how compliant certain jurisdictions try and then become some UK politicians can not get their heads around the idea of competitive tax rates. It’s a strange one because in so many ways the UK offers citizens of the rest of Europe what the Isle of Man, Jersey and Guernsey offer people from the United Kingdom. Don’t even mention UK LLP. These aren’t places where you go to hide, they are simlpy places that offer better tax rates.
There are countries in the world where there are very few natural resources to exploit, little that can be exported in order to support a population. In some cases these places take the choice to offer incentives to individuals and businesses by competing in terms of taxes. This is NO DIFFERENT than 2 shops choosing to set their prices differently and wouldn’t it be a dull world if everywhere was the same? In a global market countries are competing with each other for a finite amount of business, this is the way the world works. The UK in particular has some strange aversion to this notion of competition, especially so since the last Labour government managed to bring the United Kingdom to the brink of doom.
One wonders how long it will be until independent states find themselves rolled back into the UK all in the name of stopping people from legally reducing their tax burden?
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