The world becomes more and more integrated economically. Companies operate in many countries.
Everyone tries to spend the least and get the most out of their activities. We do it by checking the Internet for the cheapest flat screen TV.
Big companies employ clever tax lawyers to check where best to state their profits to minimize tax expenses.
Countries pass laws that encourage companies to come and incorporate in their land by offering tax advantages.
The Netherlands, Ireland, Luxembourg in Europe and small island states in the Caribbean as well as Singapore and the Gulf states do the same.
They are tax havens. Usually small countries with little natural resources, they are competing for the tax dollar. Come here, it will be cheaper!
Rich individuals own companies or pretend to in order to save taxes themselves. They take advantage of the competitive offers from countries to avoid taxes. And in some case to criminally evade taxes.
So, now it has come into mainstream media that this is actually happening. What a surprise!
The flat screen TV optimizing population is furious, or at least the mass media catering for them are reporting the furor.
They cry foul!
Oh well, most Caribbean tax havens are British controlled. The Netherlands is one of the best tax havens. Our governments have fed the quest for tax avoidance and some tax evasion as its consequence.
Western countries are working hard to curb such behaviour, yet encourage some of it to benefit them secretly. Hypocrisy.
At the same time, common people distrust their governments to spend tax dollars wisely. Is it not a good thing the government gets less to waste?
I do not have millions to hide, but I assure you, if I had I, would look into how to pay less just as I look for the cheapest flat screen TV.
Do you look for bargains?