tax havens and the G20

bondi


Joined: 12/07/2007
Posts: 116

Message Posted:
05/04/2009 18:27

Having been here in London with all that the G20 has brought, one way or t'other it was interesting to see that they(the world's leaders) are trying to tackle the "problem" of world wide tax havens and trying to bring them to some account and regulation - some hope! However, a thought crossed my mind as to the TRNC, could this be the next tax haven whereby currently unrecognised it becomes attractive to the rich and famous to invest their money?

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
05/04/2009 18:53

Bondi



A great thought as the south has already prospered under having off-shore companies and low levels of taxation.



To do the same in the TRNC they want to tax at 27.5% of the profit as well as the set up costs are also horrific.

bondi


Joined: 12/07/2007
Posts: 116

Message Posted:
05/04/2009 19:44

Do they have to go into business they are looking for unearned income- perhaps the interest rates here are something that may attract now? a residential address would not be a problem for these people and even if they pay tax on the interest they would still be dollars/quids or euros in! Stranger things have happened.

Stubs


Joined: 01/07/2008
Posts: 641

Message Posted:
05/04/2009 20:33

Bondi



people invest in YTL just now and pay tax on the interest received, that principle has not changed.



Most "off shore" tax havens happen when companies or individuals want to take out dividends of existing companies by paying the least amount of tax possible. At the current rates it not feasible to do this in the TRNC. The criteria for seeing up an "off shore " company in the TRNC is much the same as a local company except that the working capital is less. These types of company are NOT permitted to do business in Cyprus.



At the moment there is no attraction for anyone to invest anything in those types of ventures in the TRNC. No one needs a residential address to do this as you appoint nominee directors who must have a Kimlek.

Lilli



Joined: 21/07/2008
Posts: 13081

Message Posted:
06/04/2009 00:46

i dont think this piece of paradis would matt to the g2 afterall the world des nt regonise us. we are not swiss french caman we are all alone xxxxxx

canyavuz


Joined: 22/02/2009
Posts: 363

Message Posted:
06/04/2009 02:12

The amount of money bought to Northern Cyprus for tax evasion purposes is incredibly small compared to other nations, so doesn't pose such a problem.

It's nations such as Switzerland that pose a problem.



And as Lilli pointed out......None of the g20 nations (apart from Turkey) recognize the TRNC.......so it's unlikely that the U.S or France or Germany would complain about a country that they know very little about, and have no relations with.



The main place where untaxed money is being brought to the TRNC is from mainland Turkey, and seeing as Turkey don't really care much about this, we have no problems.



simple!

fire starter


Joined: 19/06/2008
Posts: 3401

Message Posted:
06/04/2009 08:13

i did meet a guy who had been done by the uk taxman after banking with the hsbc here. he wasn't impressed.