“ I could think of two dozen other things that Caymans does better than large nations like the US or other financial haven microstates, for business incorporation, capital formation, audits and more.”
By all means - proceed…
By all means - proceed…
Its mostly about the master feeder structure, other times about a sandwich, learn about those
You have a feeder for domestic tax persons, and a feeder for non-domestic tax persons and domestic tax exempt persons
Its usually dumb and pointless to have non-domestic tax persons to use your domestic feeder, because the regulations are poorly thought out and counterproductive and actually serve no purpose.
all feeders are partnerships or limited by shares, and send capital to the master entity which does the trading
the difficulty is that comparison is not just about the US or insulting any one country, many old world countries have withholding done on investment-in which even US people would find absurd. or the accredited investor requirements are much lower.
The attentiveness and accessibility of the regulators is a boon.
Dunno where to start but I hope that inspired on the depth of how deep to look. Its a great financial center.
It practically requires people to play devil’s advocate to anything I observe about the cayman islands
But the article also contributed to that, it acts like its a big mystery when the reality is that academic research groups could just never get enough money to dry run forming a hedge fund in the cayman islands and say “oooh I get it”
now they finally did some research and realize this is the worst kept secret, everyone is using the Cayman Islands already for a multitude of reasons that have nothing to do with hiding anything from tax revenues
The point is that the Caymans are neutral territory for tax purposes. If you're in the US, you owe US taxes on the profits in your Cayman fund. Likewise, if you're in Canada, you owe Canadian taxes on the profits on your Cayman funds. This is better than setting your investment vehicle up in Delaware, because if you do that, your Canadian investor will have to pay US taxes (that they don't owe) and then spend months trying to get the money back.
The on-shore US regulations are crazy enough that US based institutional investors (like pension funds) will get nervous at the lack of professionalism if you aren't using a Cayman vehicle.