Comments on: The first tax haven needs bailing out. Who’s going to save Iceland? http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/ Richard Murphy on tax and corporate accountability Sat, 10 Jan 2009 00:05:10 +0000 http://wordpress.org/?v=2.6 By: Laszlo Kiss http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-499307 Laszlo Kiss Wed, 08 Oct 2008 11:38:30 +0000 http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-499307 Richard I was just curious to know why Iceland was called as a tax haven or a secrecy jurisdiction, that is why I was asking for specific details on the topic. This of course has nothing to do with shady characters operating out of Iceland or them committing non-criminal fraud, although you could find such shady characters operating from any country 8such as Marbella in Spain). Concerning the minutiae I am indeed curious to find facts. Interpretation of such facts can of course be different but it is good that we no longer live in socialism/communism and we can debate freely. Rgds Laszlo Richard

I was just curious to know why Iceland was called as a tax haven or a secrecy jurisdiction, that is why I was asking for specific details on the topic. This of course has nothing to do with shady characters operating out of Iceland or them committing non-criminal fraud, although you could find such shady characters operating from any country 8such as Marbella in Spain).

Concerning the minutiae I am indeed curious to find facts. Interpretation of such facts can of course be different but it is good that we no longer live in socialism/communism and we can debate freely.
Rgds
Laszlo

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-499298 Tax Research LLP Wed, 08 Oct 2008 11:20:26 +0000 http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-499298 Laszlo Candidly, right now, no Iceland has collapsed No one disputes this is because of the failure of its regulation and its abuse of international finance Candidly: rather a lot might be down to fraud (even if not criminal). The reputation of some who have used it as their base has not been great And you want to discuss the minutiae Don't you think you might be re-arranging the deck chairs? Richard Laszlo

Candidly, right now, no

Iceland has collapsed

No one disputes this is because of the failure of its regulation and its abuse of international finance

Candidly: rather a lot might be down to fraud (even if not criminal). The reputation of some who have used it as their base has not been great

And you want to discuss the minutiae

Don’t you think you might be re-arranging the deck chairs?

Richard

]]> By: Laszlo Kiss http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-499296 Laszlo Kiss Wed, 08 Oct 2008 11:13:33 +0000 http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-499296 Dear Richard, I try to read the blog carefully, but still find the title of this entry "THE FIRST TAX HAVEN NEEDS BAILING OUT. WHO’S GOING TO SAVE ICELAND?" and not Secrecy Jurisdictions... On a separate note, can you point to the exact and specific secrecy provision in Icelandic legislation which enables someone to call Iceland as a secrecy jurisdiction? Thanks Dear Richard,

I try to read the blog carefully, but still find the title of this entry “THE FIRST TAX HAVEN NEEDS BAILING OUT. WHO’S GOING TO SAVE ICELAND?”
and not Secrecy Jurisdictions…

On a separate note, can you point to the exact and specific secrecy provision in Icelandic legislation which enables someone to call Iceland as a secrecy jurisdiction? Thanks

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-499256 Tax Research LLP Wed, 08 Oct 2008 08:41:33 +0000 http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-499256 Please read what I say on this blog more carefully: tax haven is a term we are leaving behind. Secrecy jurisdiction is one we prefer. A secrecy jurisdiction allows action that deliberately allows its financial structures to be exploited to undermine the stability of another state. That's a pretty good description of Iceland today Richard Please read what I say on this blog more carefully: tax haven is a term we are leaving behind. Secrecy jurisdiction is one we prefer.

A secrecy jurisdiction allows action that deliberately allows its financial structures to be exploited to undermine the stability of another state.

That’s a pretty good description of Iceland today

Richard

]]> By: Laszlo Kiss http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-498878 Laszlo Kiss Tue, 07 Oct 2008 11:19:55 +0000 http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-498878 I have to argue with the presumption that it was lax regulation which induced capital artificially to relocate to its shores. In a normal capitalist society with no exchange controls (a must) capital flies to the place which offer the best risk/reward ratio. Unfortunately the highly leveraged financial system of the US and the attitude of solving problems with pouring cheap money onto every problem (by decreasing the interest rate to 1%) created the liqudity which flew to Iceland (among many other countries as e.g. New Zealand). This was called as a carry trade and had nothing to do with taxation at all. Consequently the question of capital flow matter had no relation to any changes to the tax system, at least in the case of Iceland. I have to argue with the presumption that it was lax regulation which induced capital artificially to relocate to its shores. In a normal capitalist society with no exchange controls (a must) capital flies to the place which offer the best risk/reward ratio. Unfortunately the highly leveraged financial system of the US and the attitude of solving problems with pouring cheap money onto every problem (by decreasing the interest rate to 1%) created the liqudity which flew to Iceland (among many other countries as e.g. New Zealand). This was called as a carry trade and had nothing to do with taxation at all. Consequently the question of capital flow matter had no relation to any changes to the tax system, at least in the case of Iceland.

]]> By: Georges http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-498667 Georges Mon, 06 Oct 2008 21:09:26 +0000 http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-498667 Richard, Would low taxation plus a decent regulation atmosphere still mark a country as a "tax haven" in TR-UK's book? Richard,

Would low taxation plus a decent regulation atmosphere still mark a country as a “tax haven” in TR-UK’s book?

]]> By: Tax Research LLP http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-498652 Tax Research LLP Mon, 06 Oct 2008 20:25:20 +0000 http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-498652 Precisely for the reasons described here, all of which are actually negative attributes designed to create a low tax, lax regulation atmosphere to induce capital to artificially relocate to its shores, which is did, with catastrophic consequences Richard Precisely for the reasons described here, all of which are actually negative attributes designed to create a low tax, lax regulation atmosphere to induce capital to artificially relocate to its shores, which is did, with catastrophic consequences

Richard

]]> By: Laszlo Kiss http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-498636 Laszlo Kiss Mon, 06 Oct 2008 19:36:31 +0000 http://www.taxresearch.org.uk/Blog/2008/10/06/the-first-tax-haven-needs-bailing-out-whos-going-to-save-iceland/#comment-498636 Actually can you explain why Iceland is a tax haven? Actually can you explain why Iceland is a tax haven?

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