Tag Archive 'tax havens'

Oct 30 2008

World’s tax havens next victim of banking crisis

Published by under More News,Opinion

Many things will die in the wake of the global banking crisis, including hedge funds, some financial instruments which are simply to risky to be allowed in the hands of investment experts mostly younger than 35 and off-balance sheet tricks. 

But, what isn’t widely understood yet, is that the world’s tax havens are also about to be “closed down” – indirectly as a result of the banking crisis. My reading of the mood and the thinking of policymakers in Europe is that they will use the “grand redesign of the global banking system” (which will happen in the next months) as an opportunity to get to the world’s tax havens.

Not possible. Yes, it is. The big countries wil stand together to put pressure on all the little islands near and far to cooperate and become more transparent. As they are doing with Switzerland already. (With success, I believe.)

Pressure will take the form of economic and other sanctions against tax havens which refuse to toe the line.

As a non-user of tax havens, I’ll naturally be delighted when this happens.

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