According to the 2018 Financial Secrecy Index report released by the UK-based Tax Justice Network, the United States has risen in the global ranking of tax havens for the third consecutive time, becoming the world's second-largest tax haven, surpassed only by Switzerland.
The Financial Secrecy Index, compiled by the Tax Justice Network, ranks jurisdictions based on their level of secrecy and the total proportion of assets held by overseas individuals in those locations.
The organization estimates that approximately $21 trillion to $32 trillion in assets are hidden in tax havens globally.
The 2018 Financial Secrecy Index report shows that the United States has risen in the rankings for the third consecutive time and is currently ranked second. The index was last updated in 2015, when the U.S. was ranked third. In 2013, the U.S. was ranked sixth.
Switzerland ranked first in the 2018 Financial Secrecy Index, while the Cayman Islands ranked third. The Tax Justice Network noted that if overseas territories and Crown dependencies were included, the United Kingdom would rank first. In a blog post announcing the index, the organization stated that while Switzerland remains the world's most opaque banking jurisdiction, the trend reflected by the rise of the United States is concerning.
The organization stated that the U.S. ranking in the latest index has risen due to a significant increase in the proportion of overseas assets hidden in the U.S., coupled with a lack of significant progress in improving transparency.
In fact, with the most significant tax cut legislation in over 30 years taking effect this month—reducing personal income tax rates and lowering the corporate tax rate to 21%—and given that the U.S. has not signed the so-called Common Reporting Standard (CRS), there are various indications that the U.S. is approaching the status of a "super-sized tax haven."
Currently, financial institutions catering to global elites, such as Rothschild & Co and Trident Trust, have moved accounts from offshore "tax havens" to Nevada, Wyoming, and South Dakota. U.S. lawyers also claim that the United States is an ideal place to store assets.
At the Worldway Wealth Club, we are committed to broadening your global financial investment horizons and advocating for a high-end, international lifestyle. With twenty years of professional experience in top-tier asset allocation, we strive to create an elite WorldWaying circle for you, the pinnacle of success. For details, please call: 400-186-0266
