The OECD, UN, EU and governments in the likes of the UK and the US are all anti offshore tax havens. They make veiled claims that they are corrupt and responsible for the harbouring of terrorist funds, they use scare tactics to prevent any of us free citizens from contemplating the legitimate offshoring of our assets and funds.
And yet, there is so much hypocrisy in what many of these entities and bodies say and actually do, that we thought we’d shed a little light on the fact just for the fun of it!
In addition, we’ll present you with a wealth of information in support of offshore tax havens that even the likes of the OECD and the UN cannot refute.
First things first, tax havens not only facilitate the efficient allocation of capital, but they actively encourage their citizens to save and invest. Additionally, the existence of an offshore tax haven offering tax competitiveness is fantastic in terms of encouraging better tax policy throughout the rest of the world. Therefore, tax competition actually serves a beneficial role on many levels. In our opinion it forces greater economic responsibility on governments. Where there is a restriction on the tax capital a government has to work with, the more efficiently they are likely to use the capital available – and the less likely they are to enter into un-winnable wars and waste it on paying off fat politicians!
The bottom line is that better tax policy also allows taxpayers the ability to enjoy more of what they earn. This creates a much more harmonious and prosperous nation where people are more inclined to and better able to take financial responsibility for themselves. I.e., where people are less severely taxed, the more likely they are to have savings and investments. Not only that, but a nation where there is a more efficient and a less harsh tax policy is also a nation where there is plenty of active skilled labour, and a nation less likely to suffer from a brain drain.
If you refute all of these economic facts – what about the moral facts that back up the need to have offshore tax havens then?
There are many nations around the world that are to a lesser or greater extent unsafe for their citizens. Where there are people subject to persecution and where the basics of a civilised society are missing, so the individuals living in such nations need tax havens where they can hide their wealth and their assets.
Think of the many nations where there are corrupt ruling individuals in power who use their power to exploit their people – if you’re struggling for an example, what about Zimbabwe? If you had assets in that nation would you leave them in full view of a government that could confiscate them? In other nations, if you have wealth in a bank your name could be sold to a kidnapper who will take your children in an effort to expropriate your money from you.
There are 103 countries on the Freedom House list of nations that are not free or only partially free – i.e., there are 103 nations where crime is endemic, where there is widespread persecution and where anyone who is from an ethnic or religious minority or who has money is a common target for oppression. Well, the laws that protect wealthy entrepreneurs from Europe or the US in tax havens around the world also protect these persecuted individuals, and therefore, on a moral basis, we are in support of offshore tax havens.
If you again refute the fact that there are people out there who risk their lives by keeping their wealth or assets in their own country – what about people in countries such as Argentina where anyone with any wealth and any sense is worried on a daily basis about their government’s historical lack of ability to maintain the value of the local currency? Surely you don’t think these people shouldn’t be forced to keep their funds in banks in a country where their entire fortune could be rendered worthless overnight?
And now for a little irony – the UK and the US are both tax havens – as long as you’re not resident or domiciled therein! Look at the likes of France, Germany, the UK and the Netherlands, they all became wealthy nations growing from agricultural backwaters to middle class states in the 18 and early 1900s when they levied no taxes. And now it’s these very countries most vociferously adding their voices to the argument against tax havens – i.e., they are refusing other nations the right to do the same as they did in terms of advancement.
And the final and most beautiful hypocrisy of all – the fat cats and policy makers at the EU, the OECD and the UN all earn their handsome salaries tax-free! Brilliant! So, as many of us become increasingly concerned that our governments are going to look to us to pay more tax to bail them out of the sorry financial crisis that globalisation and immature fiscal policies have landed them in, we would just like to make a tiny suggestion. If these high tax countries want better compliance to prevent taxable revenue slipping out of their financial net, shouldn’t they look at fixing their own tax systems first?