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Cayman has no taxes. There are various fees required to register a corporation, but income and capital gains aren't taxed (for businesses or individuals). Note

Cayman has no taxes. There are various fees required to register a corporation, but income and capital gains aren't taxed (for businesses or individuals). Note that the IRS still requires US citizens to file personal income tax returns, and they still have to pay taxes on foreign earned income. I am not a lawyer or accountant, but I did live and work there for years. The main benefits are tax avoidance, but it's much more difficult for US citizens than for others (most countries don't tax their citizens on foreign income; capital gains laws vary). People will make all the obligatory jokes about shady rich tax dodgers, and there are rich people and corporations that like to keep money in Cayman for ethically questionable reasons, but the majority of Cayman finance is completely legal, ethical, and above-board.

artwr 9y ago
> People will make all the obligatory jokes about shady rich tax dodgers, and there are rich people and corporations that like to keep money in Cayman for ethically questionable reasons, but the majority of Cayman finance is completely legal, ethical, and above-board. This sounds like it might be true in terms of number of individual accounts maybe, but do you think that's true in terms of overall asset value?
- caymanjim 9y ago
  It'd be hard to draw a line on what's sketchy and what's not. Taxes are incredibly complicated. Defining what's legitimate business vs. ethically questionable vs. illegal (and whose laws are being violated) makes it hard to even categorize the money, even if there were data available on how much is there and who controls it. My guess is that there's probably much more there that's completely legal, but pushes people's buttons because they want to see it taxed at home. Like Apple's overseas billions (which are largely sheltered elsewhere, but you get the idea).
  - colechristensen 9y ago
    What is clear that the world governments are and have been accelerating their efforts to quash tax avoidance. For example, in 2013 the oldest running Swiss bank, Wegelin, (itself older than the US) shut down as a result of a guilty plea for a case brought by the justice department. https://www.reuters.com/article/us-swissbank-wegelin/swiss-bank-wegelin-to-close-after-guilty-plea-idUSBRE9020O020130104 https://www.reuters.com/article/us-swissbank-wegelin/swiss-b...
icantdrive55 9y ago
I know a few Cayman boys over the years. They were shady, but they had money. This one guy went over every two weeks with $15,000 cash. I was to young to completely know why, but the Islands were his, "Piggy Bank". I hope the IRS is at least trying to stop the tax dodgers/money launderers. He had a suit with special pockets. (These days might be randomly patted down. This guy was horrid on so many levels. He once kicked his kid down a staircase for being lazy. His child had undiagnosed congenital heart disease. I brought him up because he was a "family" man, with the Wall Street job, and even showed up for Sunday service, but just an aweful person. He was ruthless before it became kinda hip to worship money. Yes--at one time, in certain American circles; worshiping money wasen't cool.

artwr 9y ago

> People will make all the obligatory jokes about shady rich tax dodgers, and there are rich people and corporations that like to keep money in Cayman for ethically questionable reasons, but the majority of Cayman finance is completely legal, ethical, and above-board. This sounds like it might be true in terms of number of individual accounts maybe, but do you think that's true in terms of overall asset value?

caymanjim 9y ago
It'd be hard to draw a line on what's sketchy and what's not. Taxes are incredibly complicated. Defining what's legitimate business vs. ethically questionable vs. illegal (and whose laws are being violated) makes it hard to even categorize the money, even if there were data available on how much is there and who controls it. My guess is that there's probably much more there that's completely legal, but pushes people's buttons because they want to see it taxed at home. Like Apple's overseas billions (which are largely sheltered elsewhere, but you get the idea).
- colechristensen 9y ago
  What is clear that the world governments are and have been accelerating their efforts to quash tax avoidance. For example, in 2013 the oldest running Swiss bank, Wegelin, (itself older than the US) shut down as a result of a guilty plea for a case brought by the justice department. https://www.reuters.com/article/us-swissbank-wegelin/swiss-bank-wegelin-to-close-after-guilty-plea-idUSBRE9020O020130104 https://www.reuters.com/article/us-swissbank-wegelin/swiss-b...

icantdrive55 9y ago

I know a few Cayman boys over the years. They were shady, but they had money. This one guy went over every two weeks with $15,000 cash. I was to young to completely know why, but the Islands were his, "Piggy Bank". I hope the IRS is at least trying to stop the tax dodgers/money launderers. He had a suit with special pockets. (These days might be randomly patted down. This guy was horrid on so many levels. He once kicked his kid down a staircase for being lazy. His child had undiagnosed congenital heart disease. I brought him up because he was a "family" man, with the Wall Street job, and even showed up for Sunday service, but just an aweful person. He was ruthless before it became kinda hip to worship money. Yes--at one time, in certain American circles; worshiping money wasen't cool.