The Wilmington bank account is the new Swiss bank account.
Reuters: The United States, led by the eastern seaboard state, took in $2.6 trillion in deposits from non-resident corporations and individuals in 2007, according to a survey of financial jurisdictions analysed by the Tax Justice Network.
The survey of laws, practices and size of inflows in 60 jurisdictions found Delaware coming in first, followed by Luxembourg and then Switzerland. The Cayman Islands and the United Kingdom round out the top five.
“While the U.S. has been jumping up and down and saying ‘Aha, bad, wicked Swiss banks,’ the U.S. is doing exactly the same things as far as non-resident bank account holders,” said Sarah Lewis, executive director of the group, based in the U.K.
As even the most non-business-minded associate knows, Delaware is the preferred state of incorporation for most any company, even those who do absolutely no business in the state, because of its friendly tax laws. Another bonus for companies incorporating in Delaware is the expert courts, which have necessarily developed due to the proliferation of corporate cases there.
There are 700,000 active entities in the state, with only half of those being publicly traded in the United States, the tax group said.
So, how did little Delaware dominate the Swiss as the preferred tax shelter locale? Total non-resident deposits in the U.S. rose from approximately $1 trillion in 2001 to $2.6 trillion in 2007, the group’s study found. Over the same period, the same type of deposits rose from $103 billion to $1.45 trillion in Switzerland.
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