Tax Havens or Offshore Financial Centre Thesis Example | Topics and Well Written Essays - 3500 words

Tax Havens or offshore Financial Centre - Thesis ExampleRecently some countries have emerged as evident impose havens and are attracting hefty capital inf low-spirited. Singapore, Hong-Kong, Barbdos etc are only a few to name. In Asia, offshore interbank markets began to grow after 1968 when Singapore launched the Asian Dollar Market (ADM) and introduced the Asian Currency Units (ACUs). The ADM was an alternative to the London euro-dollar market, and the ACU direct enabled mainly foreign banks to engage in international transactions under a favorable revenue enhancement and regulatory environmentSimilarly in Europe, Luxembourg attracted investors from Germany, France and Belgium in the early 1970s (IMF, 2000) due to its low income tax rates, the lack of withholding taxes for nonre brassnts on interest and dividend income, and banking secrecy rules. On the same ground The enthrall Islands and the Isle of Man provided very similar opportunities. Moreover Bahrain began to serve as a collection perfume for the regions oil surpluses during the mid 1970s, after passing banking laws and providing tax incentives to facilitate the incorporation of offshore banks. In the Hesperian Hemisphere, the Bahamas and later the Cayman Islands provided similar facilities. Following this initial success by other countries, a morsel of other small countries tried to attract this business. Many had little success, because they were unable to offer any payoff over the more established centers. This did, however, lead some late arrivals to appeal to the less legitimate side of the business.