Why do I just get this feeling that this is nothing more than propaganda for the Yanks to drum up support for a righteous crusade against "foreign assisted" tax evasion?
Fluff because the onus to report taxable income is on the American, not the rest of the world. Why is it my responsibility or yours to know whether our American client properly declared and file his income taxes?
Fluff because, anyone in the know, will tell you that Hong Kong companies/banks are not exactly the best to use for outright tax evasion activities. You can do it better and cheaper elsewhere. The truth lies close to what David Ellis of Mayer Brown JSM says. Hong Kong companies can make for good (& dodgy) business and tax planning, where legitimacy (or at least an air of it) is required. Not to say that Hong Kong (or other jurisdictions mentioned) have perfect systems but the system is there to provide a service, not catch foreign tax evaders. How did Warren Buffet buy into BYD if he (more correctly Berkshire Hathaway) didn't have a Hong Kong company or Hong Kong bank account somewhere in his empire of holdings? Should we consider him to be a tax evader too? Even if he was, was it the system or the person at fault?
In the case of American tax evasion, we are talking about a very limited "abuse" of that system. The overwhelming majority of financial professionals are as guilty when it comes to US tax evasion, as say American Airlines or Carnival Cruises are in allowing your tax evaders out to do their dirty deeds. As guilty as AT&T or Sprint for allowing them to make long distance calls to their foreign bankers or access their foreign bank statements online.
Fluff because you could write the same article on 365 other jurisdictions aside from those already mentioned.......how about Delaware for starters?
No comments:
Post a Comment