I have no idea where you are wandering around with this but I think you need to read up on domicile , deemed & trusts a bit, as it seems you are giving UK’s power a bit too much credit re influence. A tax loophole and differential is a tax loophole and differential so unclear why somehow federal ones don’t count for you or why according to you it’s only a Uk thing._Os_ wrote: ↑Thu Jul 20, 2023 7:10 pmIt depends what rules were brought in to "end it". The money wouldn't just automatically all go elsewhere, because the jurisdiction needs multiple elements for the money to be safe and usable: rule of law, a banking system, not black listed. The additional benefits are the tax regime, privacy, and things like residency rules. The primary benefit for these people is being able to keep huge amounts of money hidden.Yeeb wrote: ↑Thu Jul 20, 2023 5:45 pm You are abit wide of the mark here , if UK plc closed all these former colonies tax advantages then all that money would merely flow elsewhere . Tax differentials are hardly new , US states differ , eu allowed Ireland to undercut and attract certain businesses rapidly , Spain has canaries & ceurta .. it really isn’t a unique to Uk problem, and the 2/3 thing is perhaps down as much to banking culture and power of the city than formal political ties.
See also panama, Liberia as port of convenience, Swiss cantons..
The UK offshore system dwarfs the entire rest of the offshore system, so saying something in the UK has "offshored" when it's usually still inside the UK system, doesn't really work. The comparison to US states doesn't really work either, there's US federal taxes. The comparison to Ireland doesn't work either, because this isn't about some mythical explanation about why companies invest in Ireland that ignores Ireland's EU membership and pretends it's only about tax rules not much different to Estonia or Malta (also EU members) ... this is about where oligarchs park billions upon billions to keep it safe and hidden. A piggybank isn't about setting up a company in Dublin that actually does stuff somewhere in the world.
The UK is such a big player in this, that it is also about setting up an offshore company (usually still inside the UK) that actually does stuff somewhere in the world. But that's peanuts compared to the piggybank.
You would move your piggybank from the UK to fucking Liberia because of some additional tax? Seriously? The Liberian corporate registry is outsourced to America (probably not so private then), the phrase "Liberian banking industry" doesn't inspire confidence, nor does there being a low grade civil war next door in Ivory Coast inspire confidence. It's only used for registering shipping (the admin of that is also outsourced to America) because those are physical movable assets that aren't in Liberia. There are in truth very few places safe enough and with enough scale to move the money to.
If you had 10 ordinary people in the UK working online through an offshore company and not paying HMRC (on the company profits at least, obviously they're living on something so something is coming into the UK), there was a crackdown on that and most of them left the UK, but the minority who remained started paying HMRC on all their company profits. Would you see that as a bad thing and a huge loss?
Companies / funds / shells can and do move nominal country for tax advantages all the time , it was literally what I did in a couple of my roles in the past. Have a read about German cum-ex scandal which I’ve mentioned to bimbo & TSG on PR a couple of times , that had zero to do with Uk bar the fact that the people making the decisions were in London (although technically they were not ) and their lackeys (of which I was one ) were technically in London.