The new tax haven
"The USA is a country of taxes that was founded in order to avoid taxes." These words were said by Peter Lawrence long before the FATCA law was adopted in the USA. As a consequence, over the next years the US became a stern warden of other countries which offering American citizens the opportunity to hide their money from the US tax authorities.

Firstly, the attention was paid to Switzerland, which was traditionally considered the most reliable and convenient financial depository, with a low tax burden. Between 2014 and 2016, most banks, including a giant such as UBS, were pressured by the US to disclose the accounts of American residents. Swiss banks were offered to disclose their clients and pay a penalty, before official accusations from US supervisors. As a result, the most Swiss banks chose the first option: independently disclosed their clients and paid the penalty. It was a bad precedent for Switzerland's banking secrecy.

It was started with the fact that a former UBS employee, head of private banking Bradley Birklenfeld went to cooperate with US authorities to identify wealthy evaders - residents of the US. As a result US supervisors ransacked almost all the banking community in Switzerland, turning the Swiss bank secrecy into a passing yard .

Bank secrecy was lost not only in Switzerland. It was happened almost in all of Europe, due to the introduction of the CRS standard for automatic information exchange. It was signed by the British Virgin Islands, Belize, Bermuda, Jersey and Guernsey, Cyprus, the Netherlands, etc. Such jurisdictions always belonged to classical offshore companies.

In general, FATCA and CRS make the world more transparent. And the main beneficiary of fight against offshore companies is the USA.

It seems, that The US becomes the new Switzerland. The latest trends in the financial world say that the US can become the main offshore tax haven, while all offshore conditions are met.

Confidentiality - The US is still not involved in the global exchange of tax information and this is the main advantage. It is required, due to fact that governments of many countries are beginning to be interested in confidential information about financial resources on foreign accounts of their citizens (by the way, following the example of the United States). And they participate in the intergovernmental exchange of tax information.

The presence of internal zones with a special tax regime - such states as Delaware, Nevada, South Dakota, Wyoming. Many of them become attractive for business, including tax optimization and hiding own data on owners, assets, accounts from other countries.

According to the financial secrecy rating compiled by the Tax Justice Network, published by Bloomberg, the US is the second largest tax haven in the world, behind Switzerland.
According to the report, today the US accounts for about 22 percent of the world market of offshore services and this is just the beginning. This rating, published every two years and assesses countries for their transparency of ownership structure, bank secrecy, financial reporting and disclosure. Other evaluation criteria were added this year.

Recently, many iconic European companies are beginning to work within tax offshores of the USA (Nevada, South Dakota)- Rothschild & Co, Trident Trust Co, etc.

The USA gets rid of its offshore competitors skillfully. Do you remember the periodic plums of Panama (by the hands of the International Consortium of Journalistic Investigations)? They are capitalists and severe in making business, money is the most important. If there is money, you are welcome.
And the words of Peter Lawrence, said about half a century ago, were accurate and more in demand than ever.

As a summary, I would like to note that in my opinion, there is always an alternative in the USA. And it is working in all sphere. Yes, they do everything to have complete information about the finances of their citizens (while in return, they are not given such information to other countries). The taxation is very strictly. But in return, those who do business within the USA, the country gives a lot, offers high level of administrative and financial support. Such system has been working for many decades. In general, characterizing the USA, I would say about comfort and convenience, not only for business, but for ordinary citizens. It is noticeable even in small things. Nothing makes a person benevolent than good health, a high salary and a stuffed refrigerator.
The richer the country, the more reliable social contracts it has with the citizens. It is a fact.
Unfortunately, in Russia, only prohibitive and control measures are being strengthened. Our fiscal bodies also want to see all the foreign financial information of their citizens, they are connected to the international tax exchange, the process will follow soon. Only in return the country does not offer anything. Maybe due to that fact the citizens have changed their residency (Cyprus, Malta, etc.). Although the government offered an amnesty of capital, but apparently citizens do not believe it.

Samvel Airapetyan