Secret Banking Going By The Wayside
Well, it’s all caving in, and there go all those mystery books and movies that have brought this type of thing to our attention.
Now, it looks like the sites are on banks in the Virgin Islands, where these types of banks have helped the small nation become a major player in the world finance markets and have helped their country take care of its citizens in ways they probably never could have imagined otherwise.
The prime minister of the Virgin Islands, Ralph O’Neal, stated “it smacks of colonialism when developed nations dictate standards for financial operations, especially when they don’t comply with the rules themselves. Why is it that we now in the colonies, because we are still a colony, can’t have a financial center? If you are doing something and you are saying I can’t do it, are you saying that I am inferior?”
It’s estimated that more than $7 trillion dollars and more than 400,000 corporations, probably dummy corporations, are being protected by banks in the Virgin Islands, and the G20 countries have determined that they want access to all that information so they can track down what they have determined are tax cheats and either arrest them or get money back that they feel they deserve. The G20 countries are also saying that if they don’t get that information, they will impose heavy sanctions on this country, and others like the Philippines, who don’t seem willing to share their information either, until they either capitulate or go bankrupt.
I have to admit that I have mixed feelings on this one. First, I don’t like tax cheats any more than anyone else, and these types of accounts really only favor the rich.
Having said that, I don’t like countries that bully the “little guy” because they don’t conform to what they consider is the norm. I mean, they can go after the Virgin Islands for money, but they can’t do anything about Somalia, where the leaders are basically slaughtering their own people at will? Also, if you read the news story I linked to, you’ll see where a state like Delaware doesn’t have to comply with the rules of the G20 countries, and they’re right here in the United States, although I guess they voluntarily do anyway. When I incorporated my business some years ago, I was asked where I wanted to incorporate, and Delaware was recommended because I could have saved a lot of money on taxes. I decided against it, living in New York, because it didn’t seem quite right. But I wouldn’t look down on anyone else who decided to go that route.
Another thing is that this country has all sorts of tax rules that we don’t like. Major corporations that are now sending many jobs out of this country are doing things that end up getting them tax refunds instead of having to pay taxes. If they get to be lauded for their creativity, why is it that our government feels it has the right to go after others who have found a different way to be creative?
I know, it sounds like a general tax rant, which it probably is as we get closer to tax day, but, once again, all I’m looking for is a little balance and fairness in it all. I’m not saying this isn’t fair, what the G20 countries are trying to do here, but I am saying that it doesn’t look all that fair from where I’m sitting. Your thoughts?