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Survival of offshore tax havens

27 September, 2010

While surveys of the world's tax havens are showing that changes are taking place, the need for profit and accumulation of funds will ensure the survival of offshore banking.

Many thousands of hedge funds that were housed in the Cayman Islands have moved to onshore havens, where they are hoping that the newly emboldened regulators will look at them more approvingly.
 
In order to stave off a fiscal deficit, the island of Jersey is thinking of raising taxes. The economy in Jersey was dependent on financial services for many years, but now it is looking at onshore ways to sustain an economy. 
 
Old traditions of banking secrecy are also being overturned as the US department of justice discovers US tax evaders in Switzerland.
 
One could ask if this is the end of offshore banking. But those that are in the know feel that new offshore centres will slowly emerge – the sights are already set on Malta, Mauritius and Seychelles – as the second round of offshore capitalism, and they will give rewards not available in the onshore world.

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