Economics
U.S. Companies Flee No-Tax Caribbean Havens After EU Crackdown
- Companies seek more legitimate offshore spots after OECD rules
- Ireland, Singapore and the Netherlands becoming more desirable
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Many U.S. multinational corporations have packed up or are choosing to open subsidiaries in low-tax, rather than no-tax, countries that are seen as more legitimate than the formerly popular island destinations of the Cayman Islands and the Bahamas.
They’re fleeing in response to regulations from the European Union that require them to justify the business purpose for their offshore operations. Low-tax countries that have been attractive destinations for multinationals -- such as Singapore, Ireland and the Netherlands -- are becoming even more desirable, especially as they make changes to show they’re more legitimate.