China "cover" offshore reinvestment

The Chinese Government has begun rasledovaniem offshore tax evasion. The occasion was the publication of data showing that the bulk of investment of Chinese companies spent in the financial centers with low taxes.

According to the report Caribbean Net News, after the publication of data from the Ministry of Commerce of China there may be restrictions on the use of start offshore. Statistics showed that from January to May 2007 the main investors in the Chinese economy were Hong Kong, British Virgin Islands, Japan, South Korea, the United States, the Cayman Islands, Samoa, Taiwan and Mauritius. The report pointed out that the figures show the actual amount of foreign capital invested in different jurisdictions, representing 86.16% of the total foreign capital in China.

Now China adjusts tax laws. So far, local companies pay income tax at a rate of 33%, and foreign companies through a variety of benefits, can pay only 13%. Local firms are using the difference in establishing the company in Hong Kong, and other offshorah. They use these companies to reinvest in the mainland and will have the right to «foreign» tax rate. This practice has raised the performance of foreign direct investment of China for years.

World disputes over whether the offshore financial centers of international tax evasion, again came to the fore. This happened after U.S. lawmakers agreed to come to the negotiating table on Cayman of islands about plans to narrow the «tax gap» between what corporate taxpayers actually have and what are the taxes they pay. U.S. Senate demanded that the General Directorate of the U.S. financial statements (GAO) has sent an investigation team to the Cayman Islands, which registered the international law firm Maples & Calder. The company provides a legal address to thousands of companies, including and American. The company is accused of aiding tax evasion.

In its defense, the leaders of offshore financial centers, said that the country is the most important financial centers mezhdunarodnmi and that they firmly adhere to strict regulatory regimes, which are used in many major «onshore» financial world. In response to the demands of U.S. Senator head the Government of the Cayman Islands, Kurt Tibets said, - «We have absolutely nothing to hide»

Total views: 13
Word Count: 390
Date: Fri, 13 Feb 2009 Time: 11:19 AM

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China "cover" offshore reinvestment The Chinese Government has begun rasledovaniem offshore tax evasion. The occasion was the publication of data showing that the bulk of investment of Chinese companies spent in the financial centers with low taxes. According to the report Caribbean Net News, after the publication of data from the Ministry of Commerce of China there may be restrictions on the use of start offshore. Statistics showed that from January to May 2007 the main investors in the Chinese economy were Hong Kong, British Virgin Islands, Japan, South Korea, the United States, the Cayman Islands, Samoa, Taiwan and Mauritius. The report pointed out that the figures show the actual amount of foreign capital invested in different jurisdictions, representing 86.16% of the total foreign capital in China. Now China adjusts tax laws. So far, local companies pay income tax at a rate of 33%, and foreign companies through a variety of benefits, can pay only 13%. Local firms are using the difference in establishing the company in Hong Kong, and other offshorah. They use these companies to reinvest in the mainland and will have the right to «foreign» tax rate. This practice has raised the performance of foreign direct investment of China for years. World disputes over whether the offshore financial centers of international tax evasion, again came to the fore. This happened after U.S. lawmakers agreed to come to the negotiating table on Cayman of islands about plans to narrow the «tax gap» between what corporate taxpayers actually have and what are the taxes they pay. U.S. Senate demanded that the General Directorate of the U.S. financial statements (GAO) has sent an investigation team to the Cayman Islands, which registered the international law firm Maples & Calder. The company provides a legal address to thousands of companies, including and American. The company is accused of aiding tax evasion. In its defense, the leaders of offshore financial centers, said that the country is the most important financial centers mezhdunarodnmi and that they firmly adhere to strict regulatory regimes, which are used in many major «onshore» financial world. In response to the demands of U.S. Senator head the Government of the Cayman Islands, Kurt Tibets said, - «We have absolutely nothing to hide» Total views: 13 Word Count: 390 Date: Fri, 13 Feb 2009 Time: 11:19 AM offshore news
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