As Belize attorneys our Belize law firm has dealt with the attacks against “Tax Shelters” that has effected the Belize IBC industry. Attorneys in Belize need to address these issues since Belize is one of the best locations for offshore financial activities. One definition of “tax shelter” can be found in the English Collins Dictionary as “…a country or state having a lower rate of taxation than elsewhere.”  Since many equate “tax haven” with “tax avoidance” a campaign was restarted during the recession whilst ”first world” countries saw their financial system wither. In fact, many first world commentators have held tax havens responsible for their role in the international calamity.The “funny” part is that these “Offshore Financial Centers” were a outcome of first world countries, and are today better regulated, and in comparison, the largest scandals and frauds have occurred largely  “onshore”.

Historical Origin

The Channel Islands, physically closer to France than England, are remnants of King William II, who acquired the England in 1066. A large amount of self-determination and additional privileges (tax and otherwise) were their bonus for their loyalty to the English government in 1204. They were dubbed “offshore”, i.e. out of the country. So it was Europe that created the idea which has evened the playing field now require an excuse to control world-wide efficiency. The State of Delaware initially entered the arena after they realized the greater corporate registration revenues available by providing more flexible business laws. The State of Delaware now calls itself a “Corporate Haven”, but as they say a rose by any other name smells just as sweet. At the same time, the European microcenters of Liechtenstein and Monaco had already served cross border foreigners for very long time. These started giving way to related but more efficient centers like Panama, Bahamas and eventually Belize among others.

Nothing was said until each of these former colonies started clamouring for and achieving Independence and then the first world countries’ sources surrendered to global scattering of financial activties. Competition had arrived and thus an excuse was needed. The same way September 11, 2001 afforded America a excuse to pass the Patriot Act, the Madoff’s Ponzi Scheme came as a gift that could not be thought up had they tried.