Offshore Investment

In recent years there has been an unprecedented rise in the level of taxation in all major developed countries, and a concomitant surge in the efforts made by their wealthier citizens to escape from the burden of excessive taxation, usually in the direction of warm islands with little or no taxation.

The high-tax countries replied with ever-tightening anti-avoidance taxation measures - and the battle continues. Attacks on the offshore jurisdictions in the last year or two co-ordinated between the EU, the OECD and the G7 - partly explained away as a response to the obvious need to control money-laundering - show that the high-tax countries fear they are losing the battle, despite record levels of revenue from taxation.

The record levels of revenue allow them to impose record levels of control, always of course in the very best interests of their poor, victimised, helpless citizens. The control manifests itself in many ways, not least in bureaucratic efforts to protect people from their own, human natures. Almost all high-tax countries have in place extensive webs of controls on investment, aimed at insulating investors from loss, which at the same time fortuitously prevent them from enjoying the benefits of tax-free offshore investment.