Nazaha starts probe into corruption charges against 268 government employees in April    Saudi Heritage Commission partners with Kanazawa University for archaeological studies    Saudi Arabia sees 16% increase in net direct foreign investment    Saudi Vision 2030 report highlights client satisfaction with judicial services at 97%    Prince Bader and Ammar Altaf open the sixth edition of Automechanika Riyadh    GASTAT: Saudi non-oil activities record 2.8% growth in 1Q of 2024    Gaza hostage's mother pleads for ceasefire deal    NYC police raid Columbia University building occupied by Gaza protesters    Rising Hindu nationalism leaves Muslims fearful in India's holy city    Boy, 14, killed in London sword attack    AI powered Arabic Intelligence Center launched in Riyadh    Al-Hilal beats Al-Ittihad in heated King's Cup semi-final    Infinix GT 20 Pro flagship launch: Revolutionizing esports-level gaming and ushering in a new era of the holistic gaming universe    Saudi Electricity Company gains regulatory approval for increased weighted average cost of capital    SFDA: Breast-milk substitute products are sugar-free complying with Saudi specifications    Saudi Olympic team exits U-23 Cup in quarterfinals, loses Paris 2024 Olympics dream    Al Hilal triumphs over Al Fateh in a fierce 3-1 clash at Kingdom Arena    Al Shabab overpowers Al Ittihad with a 3-1 victory in Jeddah    'Zarqa Al Yamama': Riyadh premieres first Saudi opera    Australian police launch manhunt for Home and Away star Orpheus Pledger    JK Rowling in 'arrest me' challenge over hate crime law    Trump's Bible endorsement raises concern in Christian religious circles    Hollywood icon Will Smith shares his profound admiration for Holy Qur'an    We have celebrated Founding Day for three years - but it has been with us for 300    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Tax haven property markets thrive
Published in The Saudi Gazette on 02 - 11 - 2012

LONDON — A judicial crackdown and mounting political pressure on legal tax avoidance are failing to deter companies from setting up in European tax havens.
Growing numbers of accountants, banks and consultants are signing lengthy office leases in Luxembourg and the Channel Islands as they flock to serve customers seeking the legal ways to cut their tax bills offered by having an offshore base.
That is in stark contrast to the traditional financial districts of London and Paris, where letting markets are lackluster.
“The tax avoidance business is alive and well,” tax adviser turned campaigner Richard Murphy said.

“The economic downturn is not having any impact on this type of banking.”
More than seven percent of offices in London's financial district are vacant - more than double the rate in Luxembourg's three business districts. Jersey's has “close to no vacant prime office space,” said consultant Montagu Evans.
The equivalent of about seven soccer pitches of office space was let in Luxembourg in the first half of 2012, the highest level in four years, with almost 60 percent taken by banks, accountants and business consultants, data from property consultant Jones Lang LaSalle showed.
The picture is similar in offshore centers in the Caribbean. Though hard data is thin, local property agents told Reuters the best Barbados offices are close to full occupancy while law firms and accountants expanded throughout the recession in the Cayman Islands.
Offshore centers tend to be characterized by their small geographical size, low tax regimes and financial sectors that are disproportionately large to the size of their domestic economies.
Last month, a Reuters report showed Starbucks had legally lowered its UK tax bill with inter-company loans, paying royalty fees to foreign subsidiaries and allocating money made in the UK to other units in so-called “transfer pricing”.
Last week, British Prime Minister David Cameron said he was unhappy with the level of tax avoidance by big companies.
Jersey and Guernsey are the world's top offshore centers according to the Global Financial Centres Index, which scores cities on taxation, corruption, regulation, quality of staff and airports and the ratings of local employees.
In a list of global financial centers by size headed by London, they rank 21st and 31st respectively, while landlocked Luxembourg, which the index said competes in a similar way to offshore hubs, came 23rd.
They gained a reputation for sheltering tax exiles thanks to banking secrecy laws and have been targeted by G20 leaders in a crackdown on secretive financial centers that includes Switzerland's banking system.
Jersey and Guernsey generally tax companies at zero percent, while Luxembourg has low sales taxes and does not charge companies on interest made from loans to the UK.
In 2009, all three signed up to an international ‘white list' of areas that are attempting to clean up their act by agreeing to internationally agreed tax standards.
But the recent reports linking them to tax reduction strategies by companies including Amazon and British celebrities such as comedian Jimmy Carr have triggered political anger and kept the negative image alive, even though what they do is legal.
“Businesses don't always take notice of public outcry,” said Prem Skikka, professor of accounting at the University of Essex.
Societe Generale took the most space of any company in Luxembourg in the first half of 2012, signing a deal for about 98,000 square feet in a new office block for about 10 years, local property agents said.

The bank declined to comment.
“It may sound counterintuitive but what's been driving the Luxembourg market for the last 12 months is the financial sector,” said Pierre-Paul Verelst, Jones Lang LaSalle's head of research for the Benelux region.
Chinese banks are also shifting their European offices from London to Luxembourg. – Reuters


Clic here to read the story from its source.