JUNE, 2012
In the immediate aftermath of the financial meltdown in 2008, offshore financial centers came under intense scrutiny as governments – led by the newly elected Obama administration – rushed to tighten banking regulations. For a short while, offshore financial centers became synonymous with tax havens, blamed for contributing to the global economic collapse and costing governments millions as wealthy individuals and corporations dodged tax collectors.
According to Rolf Lindsay, partner at the Caymen Island-based Walkers Global, this was a misrepresentation of the role of the typical tax-neutral offshore financial center, which is primarily to be an efficient place to raise capital that can then be deployed anywhere in the world. Those investments, he underscores, are still taxed as normal in the relevant jurisdiction, but do not incu....
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