Why make war against Offshore Banks?
The demonization of offshore banks has become, for some journalists has become a very profitable luck of modus vivendi and, above all, devoid of risk. It’s enough to reflect in the first paragraph of the manuscript, for example, “That in trying to limit the losses from taxes as much as possible, which points to tax evasion and therefore offshore banks must be eliminated wherever they are found,” to throw, instead of water, the previously negotiated ration of fuel onto the foreseeable – and therefore easily avoidable – fire.
Information can be read daily that repeats ad nauseum that “offshore banks are commercial companies with a bank status, which attract funds from depositors in a manner that is completely unclear for the authorities of their clients’ States. Tax havens are territories that host these offshore banks, since they rely on banking, tax, and general commercial legislation since they allow this sought-after opacity.”
Any economic activity outside of your country of residence (bank accounts, insurance policies, real estate investments, foreign companies, investment funds, etc.) carried out in low or no taxes on the physical person or businesses is beneficial and therefore its fiscal regime attracts clients from the principal world powers with the added value of having a high degree of legal and financial security.
It’s worth repeating that Offshore banks stand out because among their main advantages figure being less subject to government intervention and exemption from complying with regulations placed on capital (exchange controls on foreign transactions or investment policies, among others). This translates into greater flexibility in movements for their clients and, in many occasions, a reduction in costs that favors paying higher interest rates.
Generally, deposits in offshore bank accounts, as well as their profits, are exempt from any taxes and are almost always established in territories with strict bank secret and privacy laws. Offshore banks are situated in tax havens with financial centers with significant political and monetary stability.
However, operating with offshore banks located in tax havens does not give free license. The world press also gives accounts on how justice acts against offshore banks that commit crimes such as money laundering or bank accounts belonging to drug traffickers and terrorists.
It’s enough to know that transactions proceeding from or destined for those sites usually trigger alarms and attract a greater inspection by tributary and police authorities, which denotes that there can be transparency in operations carried out through these offshore banks in tax havens.