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Tax Haven Prezi
Transcript of Tax Haven Prezi
List of Off-Shore Centers
- Ritesh Jadav
Tax Haven 101
What are Tax Havens ???
Total Capital Held
Relationship with India
Let's Split the Words!!
Fee paid to the government
A place of safety
It is a place where you are safe from taxes of your government
A state, country or territory where certain taxes are levied at a low rate or not at all
Geoffrey Colin Powell
What identifies an area as a tax haven is the existence of a composite tax structure established deliberately to take advantage of, and exploit, a worldwide demand for opportunities to engage in tax avoidance.
1. Nil or only nominal taxes.
2. Protection of personal
3. Lack of transparency.
The location where financial capital winds up.
Locations that produce goods for sale primarily outside of their territorial boundaries
Conduit Tax Havens
Locations where income from sales, primarily made outside their boundaries, is collected, and then distributed.
Subsidiary shell companies there have obtained rights to collect profits from corporate intellectual property (IP) by transfers from their parent
Have flexible regulations to encourage job growth, such as free trade zones, territorial-only taxation
Isle of Man
Involves utilizing an offshore trust or offshore company, or a trust owning a company
professional financial services such as mutual funds, banking, life insurance and pensions
The company or trust will be formed in one tax haven, and will usually be administered and resident in another
Funds are deposited with the intermediary in the low-tax jurisdiction, and the intermediary then invests the money
(often back into a high-tax jurisdiction).
Sufficient income with low taxes
Increase Local employment
Transfer Skills & Technology to the local population
24-32% of total global investments
Out of $21 trillion, $9.8 trillion alone held by 100,000 people
Global tax revenue lost (2012) to tax havens is between $190-255 billion/year
Result in the accumulation of idle cash
Tax incidence disadvantaging the poor
Connections to fraud, money laundering and terrorism
One of five ways:
1. Attributing the income & gains of the company or trust in the tax haven to a taxpayer in the high-tax jurisdiction on an arising basis.
2. Standardization of Transfer pricing rules
3. Restrictions on deductibility of a withholding tax when payments are made to offshore recipients
4. Taxation of receipts from the entity in the tax haven
5. Exit charges, or taxing of unrealized capital gains when an individual, trust or company emigrates
The Foreign Account Tax Compliance Act (FATCA) was passed by the US Congress to stop the outflow of money from the country into tax haven bank accounts.
Bank Data Leak (2013) : Details of thousands of owners of offshore companies were published in April 2013. The data was later published on a publicly accessible website in an attempt to "crowd-source" the data.
At the London G20 summit on 2 April 2009, G20 countries agreed to define a blacklist for tax havens, to be segmented according to a four-tier system, based on compliance with an "internationally agreed tax standard.
Cyprus declared as a “notified jurisdiction” in November 2013
Joined hands with India to fight against stashed funds
2. Isle of Man
3. British Virgin Islands
4. Cayman Islands
OECD partnered with India
Suspended double taxation avoidance agreement benefits
Switzerland likely to be blacklisted if uncooperative
Mauritius agreed to treaty revision with India
FDI's through Tax Havens
Singapore Overtakes Mauritius as
Top Source of FDI
Mauritius (36%), Singapore (12%) The United Kingdom (10%)
Who else does this?
Is India a Tax Haven??
India's Secrecy Index
Not to Save Tax
Not a Tax Haven