As Belize attorneys our Belize law firm has dealt with the attacks against “Offshore Havens” that has effected the Belize Offshore industry. Attorneys in Belize need to deal with these questions since Belize is a chosen site for offshore financial activities. One definition of “tax shelter” can be found in the English Collins Dictionary as “…a country or state having a lower rate of taxation than elsewhere.”  Since many equate “tax haven” with “tax avoidance” a campaign was re-energized during the world-wide financial collapse whilst ”first world” countries saw their financial system wither. In fact, many first world observers have blamed tax havens for their role in the worldwide crisis.The interesting thing is that these “low tax jurisdictions” were a outcome of advanced countries, and are today more transparent, and in contrast, the biggest financial issues have been  “onshore”.

Historical Foundation

Jersey and Guernsey, physically closer to France than the UK, are remnants of the historical effects of William the Conqueror, who acquired the England in 1066. A substantial measure of sovereignty and other rights (tax and otherwise) were their gift for their loyalty to the English government in 1204. They were thus referred to as “offshore”, i.e. not part of larger land areas. As such, it is a fact that the European nations that created the concept which has leveled the playing field now require an excuse to control international efficiency. The State of Delaware became interested after they realized the increased money available by providing more flexible commercial laws. They now sneakily strive to distinguish themselves as a “Corporate Haven” and not a “Tax Haven”, but as they say a rose by any other name smells just as sweet. In parallel, the European microcenters of Luxembourg, Liechtenstein, Monaco, Andorra, and larger Switzerland and Austria had already served cross border industrialists, nobles and intertwined sovereigns for centuries. These started losing ground to similar but more efficient centers like the Caymans, BVI and eventually Belize among others.

Nobody did anything until these colonies got Independence and then the first world countries’ sources started giving way to global scattering of money. Competition had arrived and thus an excuse was needed. The same way the 9/11 attacks provided America a reason to enact the Patriot Act, the recent financial crisis came as a gift that could not be thought up had they tried.