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Seychelles is an offshore magnet for money launderers and tax dodgers

49 pointsby robdoherty2almost 11 years ago

9 comments

contingenciesalmost 11 years ago
Very informative. Another tax haven many people are unaware of is the City of London. George Monbiot puts it this way: <i>The Corporation of the City of London is the dark heart of Britain, the place where democracy goes to die, immensely powerful, equally unaccountable.</i> (See <a href="http://www.monbiot.com/2011/10/31/wealth-destroyers/" rel="nofollow">http:&#x2F;&#x2F;www.monbiot.com&#x2F;2011&#x2F;10&#x2F;31&#x2F;wealth-destroyers&#x2F;</a> and <a href="http://www.newstatesman.com/economy/2011/02/london-corporation-city" rel="nofollow">http:&#x2F;&#x2F;www.newstatesman.com&#x2F;economy&#x2F;2011&#x2F;02&#x2F;london-corporati...</a> )
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hackerboosalmost 11 years ago
I did research on incorporating offshore when I was planning on becoming a travelling freelancer.<p>The Seychelles came up as one of the easiest and cheapest places to incorporate. Very little regulation.
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benologistalmost 11 years ago
Does this whole thing depend on countries not publishing their registered companies online? And becomes immediately transparent when they do?
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jacques_chesteralmost 11 years ago
I&#x27;m descended from a Seychellois family on my mother&#x27;s side (hence my French name). It&#x27;s a rotten paradise, sadly.
nodataalmost 11 years ago
Yeah okay, but how does the amount of lost tax revenue here compare to lost <i>corporate</i> tax revenue?
dan_bkalmost 11 years ago
You don&#x27;t even need to go as far as the Seychelles to dodge taxes - there&#x27;s the inter-state tax dodging version called &quot;Delaware&quot; (although the incentive is a bit weaker).
michaelochurchalmost 11 years ago
Right now, the hot commodity for corrupt officials, criminal billionaires, and money launderers (domestic and foreign) is real estate in the U.S. (and in Canada, esp. Vancouver). The U.K. is having the same problem. Even if this seems like a small percentage of purchases (but it&#x27;s not; in London, foreigners laundering money make up about 75% of the purchases) it combines with price inelasticity to make prices go through the roof: several times what they would be otherwise.<p>Take China as an example (mostly, just because it&#x27;s a very large country) where corruption is a death-penalty charge. If things turn against you, you&#x27;re going to need not only a new identity (for your entire family) but possibly a new face (not exaggerating). The West Coast has some of the best plastic surgeons, but it also has expensive houses (which you can borrow against) and tech companies (where non-technical executive positions involve zero responsibility and make great sinecures). The sort of high-level makeover process these guys involves buying a career (including fake references) and being inserted in an executive sinecure somewhere, but that takes about 3 years, so you need 3 years&#x27; worth of cash before you can start earning on your own again. With most assets frozen and the previous identity gone, the house (delivered through a shell company to the new identity) <i>is</i> the only reliable store of wealth. Silicon Valley is attractive to the world&#x27;s criminals because it&#x27;s the one place where you can have $4 million of &quot;wealth&quot; tied up in a house and not raise an eyebrow.
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kazinatoralmost 11 years ago
Cough ...<p>&quot;She sells shelters to tax shills by the Seychelles sea shore.&quot;<p>:)
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tferrazalmost 11 years ago
what is the new news here?
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