Nowhere to run to, Nowhere to hide
The US is tightening its grip on offshore centres’ ability to ‘hide’ money from the US authorities. The firepower that the US has to uncover assets has grown steadily and the recent experiences in Liechtenstein have shown that US investors should not try to avoid paying US tax, not only on moral grounds but on the fact that the long arm will find them eventually. We enclose an excellent article by Bill Sharp explaining how this long arm was extended over Liechtenstein.
The US Department of Justice has requested administrative assistance from Liechtenstein. This is not surprising, given the continuing efforts of the US government over the past several years to combat tax evasion through the use of offshore entities and accounts putatively sheltered by bank secrecy. What is interesting, however, is the magnitude of ‘weapons’ the US government has amassed to facilitate the further eradication of global offshore abuses.
This was evident in the pressure brought to bear on Liechtenstein in reaching the point of cooperation after a request for assistance. In the future, no jurisdiction can provide an assured safe haven for such abuses, at least with respect to stable countries where one might be willing to park significant assets.
Click here to read the full report.