The other day in a conversation about offshore tax havens being mentioned in news reports where financial indiscretions have occurred in other countries, I described the situation as I see it.
Like, an aircraft carrier is a platform for a whole range of aircraft with different delivery systems from conventional weapons to sophisticated smart bombs and missiles, where the recipients of such products have everything to lose.
I think of offshore tax havens also as aircraft carriers, platforms for a whole range of banking institutions each with different delivery systems from the conventional to the more sophisticated.
Forever developing how they can deliver or package a financial product for their rich clients around the world who use tax havens to avoid or reduce their tax liability in a legal manner.
The recipients of such products have everything to win or do they? As continually reported in the world’s press, we hear about the collapse of banks due to corrupt officials, because of greed, quest for power, or due to the high risks taken in handling other people’s money for higher returns. People, institutions and even nation’s taxpayers become victims.
In a lot of cases, where I have seen reported, of a collapsed bank or incident of financial indiscretion I notice that millions if not billions of dollars have been placed in an offshore tax haven. Not that the offshore tax havens have broken any law; with the many lawyers and accountants crossing every ‘T’ and dotting every ‘I’.
With the ever increasing pressure from high taxing nations who don’t like to see resources and tax money flow out of their country, and the tax haven client’s demand for financial privacy and security, offshore tax havens have to revert to more sophisticated products from their powerful arsenal to achieve the desired outcome, to keep one step ahead and within the Law.
But as someone pointed out to me in the conversation, the problem is, aircraft carriers can end up in deep waters, become a target and even sink.
Dale Fogis
