Hong Kong, Hong Kong (PressExposure) July 28, 2009 -- /1888PressRelease/ Zetland Corporate Services is applauding the Nordic countries for deciding to negotiate tax treaties with other jurisdictions as a unit. The business consultancy service believes that the profile and efficacy of IBCs in general has been enhanced by this stance.
The move effectively gives countries seeking to remove themselves from the 'grey' or 'black' list (as designated by the OECD) a majority of the 12 treaties needed for white list status, in one move.
The Nordic countries consist of: â¢ Denmark â¢ Sweden â¢ Finland â¢ Norway â¢ Iceland â¢ Greenland â¢ The Faroe Islands
Critics within Zetland Corporate Services, as well as in the international economic community, believe the 12-treaty system is flawed in its arbitrariness. "Critics say the threshold of 12 treaties does not follow any logic and want pressure to continue on offshore centers even after they have obtained these agreements", notes James Lee, of Zetland's Hong Kong office.
"Tax evasion by some parties using IBCs gives the entire offshore investment business community a poor reputation", said Jason Weatherhead of Zetland Corporate Services.. "All jurisdictions are equally trustworthy in our opinion, and donât need to be punished for those who misuse their systems", Mr Weatherhead continued.
Zetland offers company formation services in most jurisdictions around the world. Some jurisdictions home to Zetland offices chose to maintain their principles and privacy, and were initially on the OECD grey list.