Is nothing sacred anymore

[peternap]

http://www.nytimes.com/2008/03/29/business/worldbusiness/29swiss.html?ei=5065&en=be96c778a5f8828a&ex=1207368000&partner=MYWAY&pagewanted=print

[MountainDon]

Hmmm. Interesting.

Maybe the Swiss banks who have actual physical presence outside Switzerland should be made to comply with investigations from other countries. BUT, the smaller Swiss banks who only have offices within Switzerland could continue the tradition of total confidentiality?   

It's difficult to draw lines. The article stated, if a stolen car crosses from Germany to Switzerland the police cooperate. But if stolen money crosses the border and is deposited in a Swiss bank the cooperation ends. 

[ScottA]

Just another step toward one world global banking.

[peternap]

Hmmm. Interesting.

Maybe the Swiss banks who have actual physical presence outside Switzerland should be made to comply with investigations from other countries. BUT, the smaller Swiss banks who only have offices within Switzerland could continue the tradition of total confidentiality?   

It's difficult to draw lines. The article stated, if a stolen car crosses from Germany to Switzerland the police cooperate. But if stolen money crosses the border and is deposited in a Swiss bank the cooperation ends. 

First we would have to define stolen Don.

IF I invest money in Munies, the interest is tax exempt. That's OK.
IF I set up an overseas Corporation, why should I have to pay US tax on it while it's sitting in a Swiss account. That's really what this is all about. Not drug money or stolen bank loot.

[MountainDon]

IF I set up an overseas Corporation, why should I have to pay US tax on it while it's sitting in a Swiss account. That's really what this is all about. Not drug money or stolen bank loot.

Well, that gets interesting too. Depends. Why is the overseas corporation set up in the first place? If it's simply to shelter money from being taxed in this country, I do have some problems with that. Especially when that company may have moved the manufacturing of those goods from the USA to lower labor cost countries like China, etc.

In other words I believe that money earned in one place should be taxed, if at all, by the government of that area. If I have an American company selling goods here and in France or Germany, the profits made in each country should be taxed in those same countries, under whatever rules those countries have. That's the cost of doing business. But the playing field should be level, if money earned in the US by a US company is taxed at such and such a rate, then the money earned by a Japanese company selling products here, should also be taxed here. I believe there's some inequity there. In that case I have sympathy for a US corporation wanting to be able to do the same.

What's left over could then be kept anywhere.

My ideal when it comes to corporations and taxes would be to see corporate taxes abolished altogether. Corporate profits should be available to the company for whatever they want to do with them, reinvest, buy other companies, new buildings, bonuses to shareholders and employees, etc. Having to take the tax consequences of sound business decisions into account is wrong and stifles creativity or doing what's really best.

If all corporations in all countries were not taxed on profits there wouldn't be any need to shelter profits.

Gad, it's a seemingly insurmountable problem. Gives me a headache.