How tax heavens fund their public services ?

[Likely]

How tax heavens fund their public services ? I.E How they do it without businesses/citizens having to pay tax ?

[DiscoStu]

How tax heavens fund their public services ? I.E How they do it without businesses/citizens having to pay tax ?

havens

[NotAllThere]

The governments of all tax havens make money in some way. Perhaps they own all the land and charge banks rents.

why do you ask?

[oracleslave]

Tax heaven is an interesting concept nonetheless.

[beercohol]

There is a nominal charge per IBC that scales with turnover. Since the charge (tax) is small (like just a couple of hundred dollars a year, or equivalent), it is negligable to the IBC owner.

Since the Haven (yes, Heaven was a great pun!) is able to amass a gargantuan number of such IBCs, the overall tax revenue is significant for them. In the case of small jurisdictions, like the classic caribbean islands and such, IBC fees along with tourism are major revenue.

Note also that, only IBCs are exempt from domestic tax in that Haven, and only for foreign trade performed completely outside its jurisdiction. That means any trading domestically is taxed. Also for business owners who are domiciled in that tax haven (just like us in the UK), tax is due.

[Likely]

The governments of all tax havens make money in some way. Perhaps they own all the land and charge banks rents.

why do you ask?

I dunno , I guess I wanted to inspire that "Why we need tax" topic again , but frankly it was fully covered on the Sanzar thread...

[BrilloPad]

Do citizens in IOM and/or channel islands pay any uk income tax? Reason I ask is don't they come under the UK from a defence point of view? If France invaded them, wouldn't the UK step in? Do they have any military of their own?

[dang65]

Tax Havens aren't completely devoid of tax though are they? Residents of places like the Isle of Man do pay Income Tax and National Insurance, just that it's at a lower rate than we do.

The banks presumably make huge profits from investing the enormous amounts of money that are deposited with them, and that means they can expand and employ loads of people, who then pay taxes on their incomes, and buy property and do a lot of shopping, which keeps other industries going... etc etc.

These places are also a lot smaller geographically, have a smaller population relying on state support, and aren't members of the EU or other organisations which they have to fork out billions to every year. So they can manage very well on much smaller tax revenues.

I don't know about anywhere else, but the Isle of Man certainly has very good public services, good schools, good hospitals and health care etc.

Doesn't stop people moaning about them all the time though, just like everywhere else.

[dang65]

Do citizens in IOM and/or channel islands pay any uk income tax? Reason I ask is don't they come under the UK from a defence point of view? If France invaded them, wouldn't the UK step in? Do they have any military of their own?

The Isle of Man is a UK Crown Protectorate, and presumably pays some kind of fee for this. But they aren't part of the UK, or the EU/EEC, and they have their own Post Office and Telecoms etc.

I know they have a Cadet Force which joins in with activities in the UK, so presumably their residents just join the British Army if they fancy it. But they don't have their own regiment or navy or air force.

[smiff]

I was in tax heaven once, then Hector took it all back one day.