Tax Haven - Money and Exchange Control

Money and Exchange Control

See also: Fixed exchange rate, Dollarization, and Money laundering

Most 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:

    “Want of money and the distress of a thief can never be alleged as the cause of his thieving, for many honest people endure greater hardships with fortitude. We must therefore seek the cause elsewhere than in want of money, for that is the miser’s passion, not the thief’s.”
    —William Blake (1757–1827)

    “The money complex is the demonic, and the demonic is God’s ape; the money complex is therefore the heir to and substitute for the religious complex, an attempt to find God in things.”
    —Norman O. Brown (b. 1913)

    “If mass communications blend together harmoniously, and often unnoticeably, art, politics, religion, and philosophy with commercials, they bring these realms of culture to their common denominator—the commodity form. The music of the soul is also the music of salesmanship. Exchange value, not truth value, counts.”
    —Herbert Marcuse (1898–1979)

    “All industries are brought under the control of such people [film producers] by Capitalism. If the capitalists let themselves be seduced from their pursuit of profits to the enchantments of art, they would be bankrupt before they knew where they were. You cannot combine the pursuit of money with the pursuit of art.”
    —George Bernard Shaw (1856–1950)