The great merit of the Pandora Papers is that the world now knows how easy it is to hide dirty money or criminal money in certain US states. The question is, what will the world do with this information?
Denise-Emmanuel Philippe of Bloom Law says: “I have been a tax lawyer for 19 years, but the world has changed completely over the past six years. There were leaks. The Panama documents were tracked in 2015. After disclosing millions of secret documents about coastal structures, there are now Pandora documents.
Denise-Emmanuel Philippe of Bloom Law says: “I have been a tax lawyer for 19 years, but the world has changed completely over the past six years. There were leaks. Panama’s documents were tracked in 2015. Millions of confidential coastal structure documents are now leaked to Pandora. These constructions are not illegal, if the vehicle is operated in the country, everything will be correctly reported to the Belgian tax authorities. years, a lot of money from tax havens in the United States It is astonishing that hundreds of millions of people have settled in South Dakota, and the states of Florida, Delaware, Texas and Nevada are also frequently mentioned in the Pandora Papers. Appear. According to Philip, Pandora documents prove the web is closed to tax evaders. In Belgium, there has been a Cayman tax since 2015, which is a tax-tax that requires natural and legal persons to declare their foreign legal provisions and if the tax is less than 15 percent of the assembly income, the income must be imposed as direct recipients themselves. Cayman Tax targets founders, shareholders and beneficiaries. “Taxable income from a trust such as dividends and interest is taxed on personal income tax. If the trust makes a distribution, in principle, the tax must be refunded, ”explains Philip. From 2019, due to the implementation of the European Ordinance for Belgian companies and law firms, the final beneficiaries will be registered in a central register – UBO Register. UBO stands for Ultimate Beneficiary Owners. The United States does not have a UBO registration and does not exchange financial information with countries where trust owners or owners benefit from it. “In fact, the European Union, along with Panama and countries like Trinidad and Tobago, should add the United States to its list of uncooperative jurisdictions. I think nothing has changed. The EU can then impose a 30 percent withholding tax on all union fees on financial institutions in the United States. The United States is doing the same with financial institutions around the world, refusing to disclose customer account information of American citizens. Philip believes the United States is gradually changing. “Congress passed the Corporate Transparency Act in early 2021, but the trusts appear to be out of the ring and the penalties are not enough. “” In the European Union, consultants are obliged to report certain cross-border arrangements known as the DAC6 command. Suppose a Belgian banker, lawyer or tax advisor is involved in a case in which the final beneficiary cannot be identified. Consultants in Switzerland and Monaco, on the other hand, have no reporting obligation. “They impose criminal fines. “, says Philippe.
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