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Tax Havens Obscure $1.4 Trillion of Foreign Investment in China

U.S. and European investors’ holdings of assets controlled by Chinese companies but issued offshore are worth nearly three times as much as direct investments in companies registered in China. By Tom Hancock & Spe Chen U.S. and European investment into mainland China has largely been channeled through offshore vehicles set up by Chinese companies in tax havens, according to newly published research. This suggests that foreign exposure to Chinese assets is much larger than official statistics imply. U.S. and European investors’ holdings of equities and bonds that were issued by offshore vehicles and are controlled by Chinese companies such as...

What is the global minimum corporate tax? The global minimum corporate tax on MNCs was aimed at discouraging them from shifting profits to low-tax countries. But it will reduce the incentives to attract investment in developing countries.

By Krishna Veera VanamaliCorporate tax avoidance costs countries anywhere from $100 billion to $240 billion annually, equivalent to 4-10% of global corporate income tax revenues, according to estimates from the Organisation for Economic Co-operation and Development or OECD.Developing countries are disproportionately affected because they tend to rely more heavily on corporate income taxes than advanced economies.The existing international tax rules are based on agreements made in the 1920s and are today enshrined in the global network of bilateral tax treaties. But they present two problems.The first is that the old rules provide that the profits of a foreign company can...

Key Features and Benefits of the BVI Incubator Fund

Features of the Incubator Fund  The BVI’s Securities and Investment Business (Incubator and Approved Funds) Regulations, 2015  (the “Regulations”) introduced the "Incubator Fund” which provides a streamlined basis for start-up investment managers to establish a track record of managing funds with an open-ended strategy. The Incubator Fund regime under the Regulations does not have some of the more stringent requirements that are found with the more established investment fund options (such as Professional Funds, Private Funds, or Public Funds) under BVI law.   The key features of an Incubator Fund are:   - Limited to a total of 20 Investors (Sophisticated Private...

Key Trends in Cayman and the BVI for Investment Funds, M&A, and Finance Transactions in 2022

With inflationary pressures coming to the fore in certain areas of the global economy and the continuing impact of Covid-19, there are many important and urgent issues to discuss. In our capacity as offshore legal advisers, we wanted to highlight some of the features from our Investment Funds/M&A and Finance practice from 2021 which we think will continue to trend in 2022, subject to global economic pressures, the recovery from the impact of the pandemic and the economic fallout from the developing conflict in Ukraine.  Series Financing: Many of the legal developments and client trends in 2021 will continue to...

Corporate Concerns over Global Tax Deal

By Christopher CondonWhile Treasury Secretary Yellen expects businesses to back the push for a global minimum tax, the U.S. Chamber of Commerce worries some still-ambiguous elements may disadvantage U.S. businesses.Neil Bradley, chief policy officer for the U.S. Chamber of Commerce, said the group has grown increasingly concerned that a fledgling global tax deal may “fundamentally disadvantage U.S. companies.” Bradley’s remarks, in an interview Tuesday at Bloomberg News in Washington, cast doubt on Treasury Secretary Janet Yellen’s view that U.S. corporate leaders would eventually support the historic deal and urge Congress to pass the legislation necessary to implement it. There is...

Goldfield Financials Ltd (Goldfield)

  Goldfield is a Financial Services Commission (FSC) licensed management company based in Mauritius that offers corporate and administration services to Funds, Corporates, and Private Clients worldwide.   The company is led by a team of professionals who are expertly versed in managing large complex funds and corporate structures. Goldfield, therefore, makes it easier for clients to administer their businesses thus allowing them more time to focus on their commercial activities and the performance of their funds and companies. Goldfield positions itself as a niche market player with a focus on the quality of service delivery and seamless execution. Our...

Offshore havens may be stung by global tax deal: Moody’s

Find out how Asia Outbound can introduce you to new intermediaries for your project or services.         Global minimum tax could hurt low-tax emerging markets   By: James Langton     The recent agreement to set a global minimum corporate tax rate of 15% will reduce the appeal of shifting operations to certain low-tax jurisdictions for multinational corporations, says Moody’s Investors Service.   This, in turn, may hurt countries that have used low tax rates to lure business.   “If successfully implemented, the global minimum corporate tax rate will be mildly credited negative for sovereigns that have used tax policy as a...

The G7 agreement on a global minimum tax will further squeeze the Caribbean

  Find out how Asia Outbound can introduce you to new intermediaries for your project or services.       By Bruce Zagaris   As the G7 meetings concluded in Cornwall, England, one outcome was an agreement on a global minimum tax. This initiative will further squeeze the Caribbean just as it is struggling to recover from the harm the COVID-19 pandemic wreaked on tourism, the region’s main economic sector.   May 20, 2021, represented somewhat of a turning point in this regard. The United States Department of the Treasury proposed a 15 percent rate as a starting point for the Organization of Economic...