Saturday, April 04, 2009

Malaysia is blacklisted as the tax haven

I didn't follow much the G20 meeting besides the news about Obama kissing the queen and giving her an Iphone.

I didn't know what is a tax haven until my coworkers and French family expressing their astonishment that Malaysia in one of the four countries being blacklisted as the tax haven who do not follow the OECD international tax standards, together with Costa Rica, Uruguay and the Philippines.

Oh wait, they are actually taking about the Labuan financial center, one of the territories in the East Malaysia. See how a media can manupulate the readers, everyone was believing that the whole Malaysia is doing this, but actually they are referring to one territory. It is just like people missundertood that the whole France is blacklisted while only the Martini island was involved.

I have to admit that I'm equally surprised. I would have thought that those in the blacklist should be those from Caribbean Islands (impression from US movies about money laundry) and Switzerland (thats why they couldn't join the EU).

If Malaysia (Labuan) does not cooperate with the international financial agencies, why would our politicians all hide their savings in Switzerland? They might as well having their accounts in Labuan.

A little background research, what are the factors that consider a juridiction is a tax haven:

1. No or only nominal income tax
2. Protection of personal financial information
3. Lack of transparency
4. Attracting companies having fake activities

Good to know, I should start transfering my saving here to Labuan so that I don't have to pay the exorbitant capital gain taxes in France. I hope it would be easy to open an acount there. Anyone wants to join me? I will only charge a small fee if you want to use my account. :-)


  1. Hi Bee Ean,

    Just back from Paris/Disney few days back actually. A co-traveller got his wallet taken by a gypsy at the metro...

    Back to your Malaysian as tax heaven...

    I think the main issue these G20 are talking about is "Lack of transparency". This becomes fairly politically really as China supports banning of tax heaven as long as the ban excludes HK/Macau. UK makes no mention about Jersey etc. US makes no mention about Delaware.

    And London is of course a tax heaven for the billionaire..err.. no mention about it at all.

    With China finaniclal might, HK/Macau will likely to get away and attracts lots of money

    Switzerland could not join EU because its people didn't want to. Referendum few times all failed.

    I think you don't have to worry about saving cos it is all zero percent interest (and hence zero tax) around the world now..haha..

    The main use of Labuan is to abuse double taxation treaties that other countries have with Malaysia really.. Otherwise, Malaysian is not politically stable enough and have a strong nough elgal framework to be a tax heaven..


  2. Hi Casper,

    I heard of those gypsy thefts in Paris but have not really spotted them. Well I rarely go to Paris anyway.

    Well, I wonder who many countries in the grey list are actually following the regulations. Labuan might as well just follow these countries foot step as implementation is another story anyway.