Money and Exchange Control
See also: Fixed exchange rate, Dollarization, and Money launderingMost tax havens have a double monetary control system which distinguish residents from non-resident as well as foreign currency from the domestic one. In general, residents are subject to monetary controls but not non-residents. A company, belonging to a non-resident, when trading overseas is seen as non-resident in terms of exchange control.
It is possible for a foreigner to create a company in a tax haven to trade internationally; the company’s operations will not be subject to exchange controls as long as it uses foreign currency to trade outside the tax haven.
Tax havens usually have currency easily convertible or linked to an easily convertible currency. Most are convertible to US dollars, euro or to pounds sterling.
Read more about this topic: Tax Haven
Famous quotes containing the words money and, money, exchange and/or control:
“Short of a wholesale reform of college athletics—a complete breakdown of the whole system that is now focused on money and power—the women’s programs are just as doomed as the men’s are to move further and further away from the academic mission of their colleges.... We have to decide if that’s the kind of success for women’s sports that we want.”
—Christine H. B. Grant, U.S. university athletic director. As quoted in the Chronicle of Higher Education, p. A42 (May 12, 1993)
“The Gospel of the army is cunning, as of all other human activities. The wisdom of the snake under the meekness of the sheep is what wins out.
The first Commandment is—never let them get anything on you—
The second: Graft—get privileges others haven’t got—worm yourself into confidence
The Third—seem neat and prosperous—as if you had money in the bank—”
—John Dos Passos (1896–1970)
“Let every woman ask herself: “Why am I the slave of man? Why is my brain said not to be the equal of his brain? Why is my work not paid equally with his? Why must my body be controlled by my husband? Why may he take my labor in the household, giving me in exchange what he deems fit? Why may he take my children from me? Will them away while yet unborn?” Let every woman ask.”
—Voltairine Decleyre (1866–1912)
“Why wont they let a year die without bringing in a new one on the instant, cant they use birth control on time? I want an interregnum. The stupid years patter on with unrelenting feet, never stopping—rising to little monotonous peaks in our imaginations at festivals like New Year’s and Easter and Christmas—But, goodness, why need they do it?”
—John Dos Passos (1896–1970)