Moving offshore gets new scrutiny

Filed in archive Investing on May 29, 2007

Ugland House is what's known as an "address of convenience" for many of the 70,000 U.S. and other foreign companies, limited partnerships and trusts that are based in this Caribbean locale.

In recent months, these offshore operations of U.S. companies have been under scrutiny in Congress, where some lawmakers say the U.S. Treasury may be losing millions of tax dollars.

Many U.S. companies have subsidiaries registered in the Cayman Islands, including energy giant El Paso Corp., hotelier Marriott International Inc., aerospace giant Boeing Co., and food producers Sara Lee Corp. and Coca-Cola Co.
Story here at the San Fransisco Chronicle.

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Response from: Lori (05/29/07 12:53pm)

It's interesting that after years of the existence of offshores the government would now think it's bad for business. Wonder what they thought about it back when the markets weren't quite so tight and the insurance lobby not so powerful?

Response from: Asset Manager (09/28/07 10:16am)

We have written extensively on the UK attitude change (http://winterman-am.blogspot.com/2007/08/offshore-disclosure-facility-
tax-hit.html).
Our respective governments have realised that they can avoid raising tax levels further by chasing companies and individuals to their offshore banking facilities and 'reclaiming' lost taxation. I think, however, that many clients are now just planning better.