“Tax haven is such a controversial word, even considered questionable or taboo,” says Igor Cornelsen, a leading financial investment guru with Bainbridge Investments. Yet, many of today’s tax avoidance maneuvers are completely legal, and experts claim, the loopholes are not the fault of big corporations. Cornelsen adds, “If you pass laws that are attractive and favorable to corporations, do you think no one will ever try and benefit from them?” and “taking advantage of laws that are advantageous to lowering tax liabilities is exactly what you’d expect from your accounting department.”
For decades, Igor Cornelsen has specialized in investment and finance, and he’s looked for ways clients can diminish tax liabilities, including investing abroad. “Next to Wall Street, the UK continues to be the largest financial center in the world and a cobweb of tax havens,” says Cornelsen on PR Newswire. There is a rule that dates back to the late 19th century and states that UK registered companies are only taxable if control in the country is exercised, and this is naturally exploited. For example, US companies are usually and more than likely ran from their home office in the US, and thus bypass paying hefty tax fees.
Additionally, another colonial British law states foreigners who simply reside in England do not have full British domicile status, and therefore do not pay the same tax. This allows the wealthy to bypass England’s local tax laws.
The mega merger between American-based Pfizer and Ireland-based Allergan offers a significant tax savings with the merged operations consolidating offices over in tax favorable Ireland. This merger creates the largest pharmaceutical company in the world. Also Allergan was originally a US company that was taken over by the Irish company Actavis only six months ago. Now US government officials are calling this marriage the ultimate tax evasion. “Europe has been under pressure to lift the veil of secrecy, and no one wants the trouble, so the fight against legalized tax havens typically splits Europe,” says Igor Cornelsen. Today, those tax loopholes remain and the EU has no intention of intervening.
The Authority on Money-making
When Igor Cornelsen moved from his native Brazil to South Florida, he planned on golfing everyday, but sometimes you can’t change old habits. A master of finance and investments, Cornelsen couldn’t stay away from making money, and started a new company – Bainbridge Investments. “Regardless of the criticisms, as you can plainly see with the Pfizer-Allergan deal, tax friendly countries remain a favorable option and nothing is likely to change anytime soon,” says Cornelsen.