Tax Havens, the enemies of legitimate tax jurisdictions are coming under attack – once again.
While populations around the world are screaming for tax relief, those same finance ministers are trying to attack the No Tax jurisdictions, trying to push the blame their loss of tax revenues in a significant part on these tax havens. This seems to be an annual affair but has taken renewed vigour with this world wide recession government budgets are being considered, and international trade dialogues convene.
But frankly, these political rhetorics are really tiresome and tries to sway opinion from the real problem – the cripling taxation most countries operate under. There are so many inconsistencies in their war cry against the so called bad guys…
Some countries simply operate under a low tax system, not a no tax ideology – simply turn your gaze to Singapore or Hong Kong.
The hypocritical no tax policies are often already pursued by these countries that have very high taxes to attract foreign investment.
Tax Havens by themselves have never broken any international trade laws.
But really this issue will not go away as long as there are those trying to escape cripling taxes and there are those willing to accomodate them. And here’s the irony, the high tax jurisdictions are both the pursuer and pursued too. To read more about this drama taking place, read this.
Not long ago a headline read, “Off Shore Tax Haven in Labuan Island”. Labuan? That little resort island off the Malaysian coast?
Is Malaysia A Tropical Paradise Tax Haven?
It can be. Provided you’re an overseas investor – meaning you are not resident in Labuan Island. Enacted by the Government of Malaysia, it has become one of the best offshore tax havens in Asia, and surprisingly little known too.
So, this little tropical resort with all it’s tropical spendour is a well disguised financial hot house. The unwitting visitor might not realize it at first. But the predominance of well heeled and often famous “visitors” make this little place appear unusually well appointed too. Taking a stroll into the banking or financial district, you’ll find the services for offshore banking, offshore trusts, offshore investing. All of these activities can be quite difficult to navigate for the newcomer, but never fear, there’re always the trusty offshore company formation experts (under strict Government Laws) and services to guide you.
So what has such a tropical paradise got to do with getting international tax moneys? Let’s call it friendly international competition that the world over is competing on.
Tax Havens As Money Launderers?
Even the so called wealthy and developed countries of the world are in on this battle. Sometimes called a money launderer’s paradise by the big industralized nations, they actually serve a great purpose in leveling the financial playing field where income and reducing tax rates are concerned for those people trapped within the jurisdictions of overly high income taxes.
The greedy over taxing governments that continuously fund their own coffers with tax payers cash suddenly have to reduce their income taxes to compete for those same dollars to stay at home.
Oh, another thing, ALL INVESTIGATIONS OF MONEY LAUNDERING in those jurisdictions have found very tiny percentages (less than 1%) of fight capital is really not so. In fact, the biggest money laundering problems are really within the borders of those big industrialized nations themselves – the very same ones that claim tax haven drive criminal activity! Come now, shame on them for telling the world such fibs. CLICK HERE and read about it.
In fact, most people using tax havens are legitimately doing so within the rules of their local laws and international law too.
The way I see it, there’s nothing wrong in retiring early and enjoying living life the way you want it to be.
Shameful Double Standards
Oh, shhh….once in a while, if you travel to these parts of the world, you’ll get to meet and see on international and industrial celebrities and the occassional government or former government official who make use of these shall we call them…ahhh…Facilites?
But no pictures please! You’ll not like what those jurisdictions will dictate to you if even attempt to do so. Don’t just take my word for it and go see for your self and see for yourself the tax savings wonders of an offshore company formation.
When you do alot of travelling for business you’ll realize money really is king – for getting what you want – but not necessarily what you need. Originally, in writing this article I had intended to include a long list of tax havens. The truth is, it all depends on where you live, your lifestyle and where and how you use your money and assets.
You see, depending on some conditions like citizenship or and offshore entity (company – read as investor), any country can be a tax haven. Even in higher tax juridictions in the US, a foreign held corporation doing business there and hiring any number of US citizens can have tax haven status. But always use a good gang of lawyers, bankers, accountants and other asset protection experts to protect you. Another piece of advice from the lawyers – always pay your taxes – do everything legally and you’ll be much happier.
But then stuffing your money somewhere with no other significant returns on that money is also a really foolish thing to do. Far better then to actually move to a lower tax but super high investment and profit climate jurisdiction. You get to save on taxes and make a heck of a lot more money at the same time. There are a few of these countries or special jurisdictions in the world today. The best one I have experienced is Hong Kong with a tax rate of only 17.5 % maxed. I’m not a tax expert there so simply find out for yourself from the proper experts. Be prepared to shell out alot of money to get set up but the payoff is far better than many places in the world.
Talking about costs of living – many undeveloped islands and countries in the Tropical World have tax free status for expatriates as long as you bring in tons of money to help out their poor economies. The lifestyle can be slow, easy, safe (as long as hurricanes don’t come) but it gets expensive and restrictive. You stand to lose on inflation too. And really, you won’t be allowed to become a beach bum there.
It’s your choice. Live in realtive safety and comfort of a place you had been calling home or rebuild your life in a new place and make the best of it or perhaps, you’ll exceed your wildest dreams and become a new citizen of the new place.
Another fact that I should mention is that the world is no longer closed and uncivilized as many developed countries’ governments would have you believe. They’ll even go as far as to make it very difficult and “dangerous” sounding on you should you pull up stakes and fly off. The truth is, there are tens of thousands of multimillionaires in many corners of the globe living the life they wish, in even more freedom than they have ever done so before. Talk about financial freedom. No, these are generally not laundered money specialists, mafiaso types, tax exiles or anything of the sort. They are people who may actually have several citizenships.
If you get interested, check it out for yourself. BUT DO YOUR DUE DILIGENCE. Is this what you’re really after to save a few tax pennies? Can your new lifestyle bring you more money and happiness? Or maybe you should simply stay where you are and rebuild your life with much reduced taxes (properly and legally done) and increased income, no matter your economic circumstances today.
