Monday, May 19, 2014
Limiting Individual Access To Tax Havens Is Underway. Corporations May Be Next.
Its easy to be skeptical about our ability to get the cooperation needed by limiting tax avoidance. This article shows that the effort is not futile. Programs in the US and agreements within OECD nations is making a dent in the use of tax havens by most individuals. Corporations, however, are a different animal. US corporations choose to incorporate in Delaware or Wyoming because they have the most corporate friendly governance requirements, which among other things, enable corporations to organize themselves in ways that make it easy for them to legally avoid taxes. The next big step may be to address the problem presented by states like Delaware which is in the business of selling corporate friendly incorporation rules.