Within the 1600s, Louis XIV’s finance minister famously described the artwork of taxation as being to get the utmost quantity of feathers from the goose, with the least quantity of hissing. At London’s Fats Duck restaurant, they’ve taken a distinct method. By utilizing tax havens, Heston Blumenthal’s eating places seem to have goosed the tax authorities.
By flying the earnings to the tax haven of Nevis, which prices no firm tax on the earnings of international corporations, the well-known restaurant chain appears to have feathered its personal nest on the expense of the remainder of us.
Heston Blumenthal, who additionally operates the Dinner restaurant at Melbourne’s Southbank, isn’t the one one apparently utilizing tax havens. By one estimate, 4 out of each 10 of multinational earnings are actually routed by way of tax havens. Dubbed “Treasure Islands” by one skilled, locations like Panama and Bermuda have grow to be notorious for his or her willingness to accommodate corporations and their unwillingness to share details about them.
However what we do know is fairly worrying. In response to a current report, the Cayman Islands now has 106,291 lively corporations, which is sort of twice as many corporations as folks (by comparability, Australia has one firm for each 10 residents). The overwhelming majority of those companies have zero employees, zero flooring house, and nil native gross sales. The rationale they’re there? They wish to pay zero tax.