G20 may spell trouble for offshore investors
April 3, 2009 by Personal Liberty News Desk
Politicians gathered at the G20 summit in London have vowed to crack down on tax havens by introducing cross-border regulation.
Blaming offshore tax havens for the current financial crisis, G20 leaders, with the exception of China, pushed for more regulation and compliance on the part of countries with favorable tax laws.
Media sources have reported that President Obama was instrumental in bridging disagreements between the Chinese and the French, in particular.
"There will be no guarantee about the safety of funds there," commented British prime minister Gordon Brown.
"If tax information is exchanged on request, as these countries have agreed to, then the benefits from being in these countries will diminish every day," he added.
According to a commentary on the Radio Free Europe website, governments have a variety of options to enforce such rules, including the freezing of assets of independents states if they refuse to comply.
The Organization for Economic Cooperation and Development has estimated that $1.7 trillion to $11.5 trillion dollars are being held in tax havens around the world.