Billionaires Suffer as Tax Shelters Go Away
Billionaires are having a hard time finding tax shelters to hide their money, as countries are making their banking systems more transparent and are even raising tax levels. Cyprus, for example, is required by the European Union, as a result of the bailout, to tax bank accounts of more than 100,000 euros. Singapore has also passed legislation that will make laundering profits from tax evasion a crime starting on July 1.
While many are pleased that billionaires will not be able to avoid paying taxes on large bank accounts, some argue that this crackdown will hurt the economies of these countries. Businessmen will move their money to countries with more favorable policy, and a country like Cyprus can ill afford to lose investors as it is still experiencing economic struggles. Also, at the prospect of attracting foreign investors, small countries do not overtax, which encourages investment and ultimately helps the international economy grow.
Written by: Constantine Kostikas