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I would be interested to read an article or documentary on tax havens in general. How did they come to be? What are the origins of "shell companies"? Why do th
by cj 2y ago
I would be interested to read an article or documentary on tax havens in general.
How did they come to be? What are the origins of "shell companies"? Why do they still exist in 2024? How is profit shifting legal and why do countries allow it?
Why do countries like Switzerland have such strict banking privacy rules? Do they do that intentionally to attract foreign money into their country?
Basically, is there another side to this coin that isn't so obvious from the outside looking in.
- NoboruWataya 2y agoIt is kind of the accumulation of a lot of different principles that seem reasonable in isolation. People can incorporate companies for the purpose of carrying on their business. Businesses can trade with each other. Businesses can trade with businesses in other countries. Businesses are taxed on their profits. Profits should not be taxed twice. Sovereign entities can set their own taxes and tax rules. And various other principles like these. It's when they all interact, particularly when the principles are implemented slightly differently in every country, that there is a lot of room for shenanigans.
- Eddy_Viscosity2 2y agoLaws are often written by lobbyists who very carefully and deliberately insert clauses (sometimes subtly, other times less so) that they know can be leveraged for huge advantages to certain parties (those paying the lobbyists). The role of this sort of banal corruption in the creation of, and continued existence of, tax havens should not be underappreciated.