The Cayman tax haven ship is overloaded with debt, is leaking and is headed straight for the rocks.
The Bahamas ship hit the rocks 30 years ago and has not yet recovered. Many of their survivors swam to the Cayman ship.
Recently, the Bermuda ship hit the rocks and some survivors also joined the Cayman ship. But are those survivors likely to remain?
Does our ship have a competent captain and crew? Are they watching where they are going?. Have they posted lookouts? Do they notice that some rich, high tax countries are shooting at them? Do they notice that some other countries have announced plans to build their own tax haven ships to compete with us?
How difficult is it to build a tax haven ship? Not very difficult. All they need to do is revise the tax laws that are preventing tax haven operations and then make themselves attractive to tax haven operators.
Are there any signs that our ship is changing course? Not that I can see. Goldman Sachs recently moved its entire hedge fund accounting division to Canada because of management difficulties caused by our Rollover law. No doubt, other companies are donning life jackets as well.
How is it good for Cayman if Caymanians lose their jobs when entire companies jump ship?
Wouldn’t it be much better if our crew would reverse direction, cooperate with current and prospective companies, welcome them with open arms, and quit interfering with their managements?
The world is very competitive. There are more and more tax haven ships to which to jump, and whose crews welcome their new passengers with open arms.
It would seem prudent for us to at least do the same.