Yep, when reputable hedge fund managers and tax accountants tell you that they'll manage your money - believe them, they do it right!
On Saturday, July 22,2012, The BBC reported that the super-rich have an unreported $21 trillion in offshore bank accounts - especially in Switzerland and the Cayman Islands.
They say the amount that the super-rich have in these and other tax havens equals the GDP of USA and Japan combined.
(A tax haven is a country or territory where monies in bank accounts aren't taxed or are taxed at a very low rate.
Usually, citizens of and companies based in that country or territory, pay little or no income tax).
Global governments have been trying to access these funds, without success and have even passed new laws in attempt to get at these funds.
However, quite a few government have just about given up trying to retrieve these monies, as these monies have been strategically placed in hedge funds.
(Present laws are insufficient to define the placement of monies in hedge funds, as tax evasion and so these monies will remain in these havens and grow, grow, grow!)
These governments claim that these unreported monies would have helped impoverished developed countries...
...but with a weak global economy, no doubt these tax monies would be a boon to governments of developed countries who need money to stimulate growth in their economies.
I guess it's a catch-22 situation: the super-rich do fund political campaigns...any attempts to touch their monies, no doubt will have dire financial consequences for whichever political party implements laws to tax their monies in offshore accounts.
So what's a government to do?...nothing, really...for now, their hands are tied.
Gillian
Sources Include
Article,"Tax havens: Super-rich 'hiding' at least $21tn", BBC NewsOnline, July 22,2012
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