Tax Havens Flashcards
What did starbucks do involving tax between 2009 and 2012?
Reported no profit and paid no income tax on sales on £1.2 billion
When did starbucks start paying more tax?
In 2015 paid as much as its first 14 years after pressure to scrap complex tax structures
Why have shoppers been urged to boycott Amazons British business?
It paid only £4.2 million despite sales of £4.3 billion
How did facebooks tax change after it expanded in the UK?
Paid £4.2 million in 2015 but tax increase from 2014 only £4300
What is an example of a celebrity illegally reducing their tax?
Jimmy Carr used o K2 tax scheme as a way to lower his tax
What are Luxembourg’s corporate tax rates like?
Low
What does Luxembourg have an extremely low tax rate on?
sending money into and out of the country
What is the tax charge for corporations that funnel money through Luxembourg?
Around 1%
Why is Luxembourg’s low tax rate a huge incentive for large corporations?
Have the opportunity to save billions in corporate tax bills
What is not present to this day in Jersey involving tax?
No inheritance or capital gains tax
What is the corporate tax rate in Jersey?
0%
What is the exception with tax rates in Jersey?
Taxes levied on financial services, utility and property companies
What is the Caymans rules on tax?
Laws that allow a corporation to be formed and retain their assets without paying tax when held for business purposes its perfectly legal
What can be done to avoid Puerto Rican tax levies?
Can avoid most of it if you apply for one of 2 special “tax decrees”
With the tax decrees in Puerto Rico what is the tax rate?
4%
How long do you have to live in Puerto Rico to get the tax decrees?
6 months
What do tax havens facilitate?
The uneven distribution of wealth and capital in favour of more developed nations, the wealthy elite and TNCs
Why do people use tax havens?
No one wants to lose a sum of money earnt but mots countries charge tax on how much you earn
What is an example of income tax in the uk?
20% on anything between 12000-50000
40% between 50000-150000
After that 50%
Why do millionaires and TNCs use tax havens?
They would be taxed a significant amount so tax of almost 0% or below 10 reduces that loss
How much in dollars are locate din tax havens?
between 5 and 7 trillion
How much have Cayman registered banks accumulated?
$1.5 trillion
How much have Luxembourg’s mutual funds amassed?
$2.3 trillion
How much money do swiss private bankers mange?
$4trillion of assets
