Hong Kong, Hong Kong (PressExposure) September 19, 2009 -- /1888PressRelease/ Zetland Corporate Services, a leading offshore investment management service, has long held the position that offshore investment business has a role to play in a healthy global economy.
The sentiment was recently echoed in a paper by the British Institute of Directors encouraging the UK government to use tax rules encouraging holding of assets in the UK, instead of aiming to punish those who use international investment management services.
"Free market forces have built some of the greatest economies in the entire history of the world", said Jason Weatherhead of Zetland Corporate Services. "Yet some major world governments can't see how allowing those free market forces on an international level, instead of treating IBC owners punitively, is a much sounder long-term strategy all round".
The British Institute of Directors agrees, saying that if offshore tax avoidance is defeated, countries would no longer feel obligated to reduce their own burden on their businesses. "The resulting burdens on business will in due course slow economic growth", said the report.
Other key points of the report included:
â¢ Aggressive action by governments to keep money onshore is actually counterproductive â¢ Abolishing offshore investment businesses would effectively make a cartel of every government â¢ Developing countries would attract less investment and possibly need more humanitarian aid â¢ Low tax jurisdictions "can oil the wheels of commerce" (from the report)