Excellent news from the Las Vegas Review:
President Barack Obama's plan to limit tax breaks for multinational companies will include an amendment that affects alleged tax havens at home, including Nevada and Delaware, a knowledgeable source in Washington, D.C., said.
The yet-to-be-announced amendment will make sure that U.S. states do not replace offshore countries like Switzerland, Luxembourg and the Cayman Islands as tax havens for wealthy individuals and businesses, the source explained.
To prevent the corporations from turning to the Silver State and others, the Treasury Department will propose a legislative requirement that state officials obtain the identity of corporate owners and their tax identification numbers of any company registering in their states. The documents would be available to the Internal Revenue Service but not to the public.
They should, of course, be available to the public too. There is no reason why anyone using limited liability anywhere should be afforded anonymity: the very idea is an abuse of human rights. But it is a step forward if it happens, and an important one.
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Hi Richard
I have just recently been following your blog, and I believe I understand (and to a large extent agree with) the argument as to why government agencies (both foreign and local) should have access to shareholder information for tax or other purposes.
I do not understand why such information should be made freely avaliable to the public though. What is the reason and how is not making the information avaliable an “abuse of human rights?”
Min
Simple
1) Limited liability means a person can avoid their obligations. It is privilege granted by society. We need to know who is being granted that privilege so we can decide is we want to trade with them on that basis or not
2) Behind secrecy there is abuse – look at the UK House of Commons. Transparency reduces corruption and we’re all better off
Richard
The liability is limited only if the entity fails. When that happens names come out.
Remember too that in the US, people have a right to privacy.
Fred
I’ve got no problems with people having privacy
Limited liability entities aren’t people. They’re legal constructs. That’s quite different
If you want privacy don’t ask for limited liability
It’s a simple and entirely appropriate rule
Richard
Thanks, Richard.