Globalization has intensified the mobility of money while rich individuals and major companies have sought shelter for their income in tax havens offering anonymity, low regulation and low or no tax rates. Tax avoidance has undermined the tax base of many countries.
Under threat of sanctions and coordinated global assault, Switzerland, Liechtenstein and other tax havens are entering into tax treaties which will affect the traditional bank secrecy and professional privilege laws.
Moreover the OECD is seeking to establish a global standard for tax cooperation.
Switzerland will be one of the first countries to revise their tax treaties because it is home to by far the bulk of the world's offshore wealth.
The OECD recently placed Switzerland on its list of uncooperative tax havens, joining the ranks of Andorra, Austria, Hong Kong, Liechtenstein, Luxembourg, Monaco, and Singapore, which have now all agreed to adopt the OECD guidelines. Britain will call on a number of British territories including Bermuda, the Cayman Islands, the British Virgin Islands, Gibraltar and Turks & Caicos Islands, to implement the rules quickly.
The European saving tax directive has a few shortcomings, mainly because it only seems to apply to individuals. Corporations, partnership trusts and other business vehicles are not covered by the said directive.
Many multinational corporations are able to use sophisticated tax planning through complex corporate structures, transfer pricing and royalty programmes. The G20 may now consider combating corporate tax avoidance and accountants, lawyers and bankers who are putting together tax avoidance schemes.
The purpose of the conference is to discuss the above developments and the consequences of recommendations that emerge from the OECD initiatives and highlight how to use the different jurisdictions for private banking, fiscal optimization, and how to use Switzerland as a base for private banking and international activities.
Topics developed:
- Banking secrecy: how does it affect Switzerland
- How to deal with European saving tax directives
- Could US entities be used by non US persons as convenient tax efficient legal entities?
- Legal environment of tax in Luxembourg, Cyprus, Panama and Gibraltar
- Creating a tax holiday by immigration
Countries covered:
- Switzerland, USA (especially the Delaware State), Gibraltar, Cyprus, Panama Luxembourg, and Israel.
Glossary
