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Start /The paradise Fiscal




Tax havens hide at least 12 trillion dollars, 10% of world GDP in 2018.


paradise offorThere are at least 54 jurisdictions on the planet: Anguilla, Antigua and Barbuda, Bahrain, Bermuda, Brunei, Dominica, Fiji, Gibraltar, Grenada, Guernsey, Isle of Man, Cayman Islands, Cook Islands, Falkland Islands, Northern Mariana Islands, Islands Solomon, Turks and Caicos Islands, British Virgin Islands, US Virgin Islands, Jersey, Jordan, Lebanon, Liberia, Liechtenstein, Macao, Mauritius, Monaco, Montserrat, Nauru, Saint Lucia, Saint Vincent and the Grenadines, Seychelles and Vanuatu, Andorra, Bahamas, Barbados, Belize, Hong Kong, Marshall Islands, Maldives, Niue, Panama and Saint Kitts, Nevis, Aruba, Cyprus, Curacao, Ireland, Luxembourg, Malta, Netherlands, Samoa, Singapore, Switzerland, Trinidad and Tobago.


They are characterized by:


- Null or little fiscal taxation.


- An opacity in the operations, that is to say, it is not known who the real owners of the companies or of the deposits to the banks are because they use front men and the fiscal institutions or the Governments cannot investigate neither the operations carried out nor their true identity.


It is not difficult to imagine how many operations classified as illegal can be carried out with these conditions:


- Money laundering


You simply go in a suitcase with money, open an account in your name or through an intermediary front man or an offshore company also with a front man, as there is bank secrecy, then you can transfer them to your account in your country.


- Evade taxes


banknotes in the sunMaking an intermediary company in international purchases.

The offshore company of a company first buys from the supplying company at a certain price and then sells what was purchased from the company itself at a higher price, this company sells the products with its profit and thus only pays the taxes on the last sale and does not those of the purchase made by the offshore company, since offshore companies do not pay taxes.


Example: a branch in a tax haven buys a product from Japan at €4, it sells it to the same company in a country at €12, obtaining a profit of €8 per unit, which will not be taxed as it is an offshore company. The company in the country sells it for €15 per unit, so it only pays taxes on the €3 profit (15-12) and not on the €11 that it has actually obtained.


Making an intermediary company to make investments.

A Bank creates an offshore company where it deposits money that it later invests in stock securities, shares, bonds, or investment funds, since the company pays taxes in the country where it is and this is a tax haven, it does not pay taxes


- Put invented money


But given that current accounts are numbers inside a computer, why not increase those numbers as much as we want but that goes unnoticed? Because it only requires the Bank to do so and the economic authorities in charge of monitoring the activity of the Banks do not give importance to it, because curiously many of these tax havens are located on small islands, very far from the countries that do monitor bank checking accounts.


That is to say, what is illegal to do in the Banks of a country, it is not if you use a tax havens.


The curious thing is that companies and individuals are allowed to trade in tax havens, when it is only a matter of prohibiting all processing with these places.