The United States is now third place in the list of top tax havens for foreign companies on the biannual Financial Secrecy Index by the Tax Justice Network, next to Switzerland and Hong Kong.
According to the Huffington Post, the Financial Secrecy Index report shows that there is an estimated $21 to $32 trillion privately owned financial wealth lightly taxed, or untaxed at all, in secrecy jurisdictions from all over the world. These locations are more popularly known as “tax havens,” which are countries that use secrecy to bring in illegitimate financial flows. The report reveals that Delaware and Nevada are examples of states that have turned into tax havens by allowing anonymous shell companies to work in their locations.
Forbes reported that the Tax Justice Network accuses the IRS to be stingy when it comes to sharing its information. America’s Foreign Account Tax Compliance Act (FATCA) gives the nation more data than any other country in the world. The IRS announced that it is sharing taxpayer’s data reciprocally with other nations as long as they follow its stringent standards.
The original article can be found at www.vcpost.com