For moons, Cyprus is recognized as a tax haven. In the OECD or IMF definitions, a tax haven is generally identified by a territory that meets these 4 criteria:
- Taxes insignificant or nonexistent;
- Lack of transparency on the tax system;
- The lack of exchange of tax information with other states;
- The absence of substantial activities
Limited to financial transactions
Apart from the sun and the sea, Cyprus’s economic activities are limited to financial transactions. Rich British, African, Chinese, Greek and Russian citizens and even foreign banks have become accustomed to playing tax havens with the complicity of the politicians and bankers of this Mediterranean oasis.
Well, the banks in Cyprus are on the brink of bankruptcy and his government has dared to beg for help from the European community. Minute. Why, help a country deemed to be a facilitator of tax evasion and money laundering for the Russian mafia? It obviously does not make sense to ask the French, Germans, Spanish, Belgians, Italians and other Europeans to make an effort to save this tiny parasitic financial system.
Draws on the coffers
Exactly, it does not pass. Unless Cyprus draws on the coffers of its privileged “clients and citizens”. The Eurogroup has therefore meant that a special tax of 6.75% for assets of less than EUR 100 000 and 9.9% for higher amounts would serve as collateral for a loan of EUR 10 billion. Personally, I do not see the scandal. The odious would ultimately be to lend to these rogue states unconditionally. In fact, the news would be much more terrible without this tax. Cypriot banks would simply close by bringing in 100% of customer deposits.
Stock market turmoil has been so strong
If in Asia and Europe, the stock market turmoil has been so strong, it is feared a contagion effect or worse … the beginning of a witch hunt that target the complacent states to tax evaders. Although this may lead to volatility on the stock market in the short term, I am delighted to see that we are finally tightening the screws at off-shore centers. If it is necessary to point the finger at some of those responsible for the endless European financial crisis, tax havens are worthy of the role of support.
In Quebec, Cyprus is reminiscent of many investors. Themis Papadopoulos and Mario Bright of Triglobal Capital cheated more than 250 Quebecers before going to enjoy it under the hot airs of Cyprus. In July 2008, the trustee Jean Robilliard tried unsuccessfully to recover $ 86 million siphoned by these Greek scammers.