The story “US Senate Approves Bill Targeting Offshore Tax Havens” as reported by American Banker, Accounting Today, Forbes and a host of other sites is another “Tiger without teeth” which is designed to scare people into not using a Seychelles Offshore Company as a legitimate asset protection and tax-reduction structure.
They report that “The legislation would give the Treasury Department new tools to crack down on foreign governments and foreign financial institutions that it concludes are impeding U.S. tax enforcement.” What the US is saying is that they will place themselves in a position to attempt to circumvent another countries laws in a further attempt to recover taxes from anyone benefiting from an Offshore Company such as a Seychelles International Business Company (IBC).
Have you ever stopped to ask does Barack Obama have any Offshore Companies where he places his assets? What about the people passing this weak piece of legislation? What about Mitt Romney?
Seychelles is an International Finance Centre which is currently being assessed by the OECD and continues to be rated by the OECD’s Peer Group Review Committee to ensure that Seychelles remains compliant with the international standards set by the OECD. Currently Seychelles is and has been on the OECD’s white list.
Seychelles is an Independent Republic, with a stable government, transparent laws and compliant with the OECD’s Exchange of Information for Tax Purposes. A Seychelles IBC is an International Business Company and is what the aggressive countries call an Offshore Company.
Seychelles protects its Offshore Companies with very strict legislation which is based on the very best practices of other compliant jurisdictions. Seychelles legislation in relation to the Seychelles IBC Act (IBC Act) and the Anti-Money Laundering Act (AML Act), are extremely strong in relation to the illegality of money laundering and tax avoidance, both of which are illegal in Seychelles. A Seychelles Offshore Company is a structure with the main purpose being to protect assets. These assets can take any form such as a holding company, a trading company and the list is almost unlimited, but the company cannot engage in illegal activities like pornographic sites, gambling sites and anything else that is illegal in the Seychelles. The fact that there is zero tax which is designed to bring business into the Seychelles is just a benefit to the company and makes the cost of running of the business smaller and is a very big incentive for businesses to invest in the Seychelles.
Small Island Developing States such as Seychelles have limited resources and need to attract investment from overseas. This is the function of the Seychelles International Financial Centre and Seychelles Offshore Companies.
Due to the strength of our laws and the integrity of our agencies such as the regulator, SIBA, the Financial Intelligence Unit (FIU), the Judiciary and the Ministry of Finance, the US Government cannot go on fishing expeditions such as asking any of the above authorities for all information on a particular person. The only way a foreign government can obtain information in relation to a Seychelles Offshore Company is by having a warrant issued by a Court of Law indicating a crime that has been committed or proof of activities that relate to the AML Act. This is strictly adhered to by all the above parties and so the only time aggressive countries are able to obtain information on a Seychelles Offshore Company is when they are able to prove in a court of law, that a crime has been committed or actions that are in relation to Money Laundering.
When you consider the new US bill targeting offshore tax havens and the above, you will quickly realize that these aggressive countries have no teeth to be able to force an Independent and internationally compliant country such as Seychelles, to give to them confidential information that is protected by law without court orders.
This shows that the new US Bill is yet another “Tiger without teeth”