StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Select a country and analyze the recent state of their fiscal policy - Research Paper Example

Cite this document
Summary
The Cayman Islands The Cayman Islands is a small Caribbean country that entices the world’s millionaire’s club with its dreamy reefs and beaches and investment-friendly government policies. It definitely is not a surprise that tourism and financial services are the backbones of its stable economy…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER93.8% of users find it useful
Select a country and analyze the recent state of their fiscal policy
Read Text Preview

Extract of sample "Select a country and analyze the recent state of their fiscal policy"

Download file to see previous pages

To ask which comes first is like asking the perennial question, “Which comes first, the chicken or the egg?” On the one hand, there is the leisure and pleasure travelers who come from around the world come to enjoy its pristine beaches and breathtaking coral reefs. Then while there, they make a little side trip to the business center to open an offshore bank account, invest in the stock market or buy the nice lot they have spotted while trekking. On the other hand, there are the business people on their nth business trip to the Caribbean islands to have their corporation or business registered.

They are also there to buy stocks, invest in trust and mutual funds, or open an offshore bank account. And while waiting for their business to get processed, they check-in into a resort and go scuba diving on one of the island’s amazing reefs. Aside from its natural wonders, the government of this three-island country lures investors with its zero direct taxes. Yes, you heard it right. The 57,000 Caymanians pay no direct taxes to the government. There is no tax on income, donation, and inheritance.

Capital gains tax and corporate taxes are also unheard of in this Caribbean haven. Finally, there are no property taxes in Cayman Islands. At most the government collects a six percent to seven and a half percent (6% to 7.5%) stamp duty for the sale of real property, which is based on its value at the time of sale. There is also a one percent to one and a half percent (1% to 1.5%) fee that is collected for mortgages of real property (Cayman Islands Government FAQ). Simply put, for the Caymanians, it means that there is no need to declare your income, what your properties are, or any other assets for that matter (Cayman Islands Chamber of Commerce).

The government does not collect data how much you earn, how much you spend or how much you owe. The government is not interested to know how you earned your wealth. They don’t care if you worked for it, inherited it or received it as a gift. For the foreigners, zero direct taxes means there are no restrictions on land ownership. Foreigners can purchase land for as much as they can afford. There are no limits on investment opportunities. The government does not want to know what you invested into and how much money you put in a certain business.

Foreigners can open as many bank accounts as they like. As a matter of fact, if you show up in person and present yourself for interview by the bank, you only need to present your passport to open an account. No certification of identification is necessary (Investing in Cayman) As a matter of fact, this zero direct tax system is the country’s major selling point to investors who are always on the lookout for better terms for their money. The primary industry of financial services, together with its allied professional services industry which includes lawyers, bankers, accountants, and financial advisors account for 55% of the country’s Gross Domestic Product (Teather 11).

More specifically, this industry provides 12,500 jobs which is 36% of the employment rate of Cayman Islands. The 55% GDP actually account for 40% of the total revenue of the government. Finally, financial service is what brings in 30,000 visitors annually to the three islands of this Caribbean nation. I have focused my research and discussion on the zero direct tax rates in Cayman Islands because I

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Select a country and analyze the recent state of their fiscal policy Research Paper”, n.d.)
Retrieved from https://studentshare.org/family-consumer-science/1422395-select-a-country-and-analyze-the-recent-state-of
(Select a Country and Analyze the Recent State of Their Fiscal Policy Research Paper)
https://studentshare.org/family-consumer-science/1422395-select-a-country-and-analyze-the-recent-state-of.
“Select a Country and Analyze the Recent State of Their Fiscal Policy Research Paper”, n.d. https://studentshare.org/family-consumer-science/1422395-select-a-country-and-analyze-the-recent-state-of.
  • Cited: 0 times

CHECK THESE SAMPLES OF Select a country and analyze the recent state of their fiscal policy

Funding for Public Schools

This has been triggered by the recent court decisions which declared the mechanisms of 'Texas public school funding' unconstitutional.... It will also analyze the impacts, recommendations and implementation of court opinions and decisions on the West Orange-Cove case of 2005.... Finally, it will bring out my own reflections of the belief I have regarding the property tax systems of the state and how it will impact on the financials of the public schools in Texas state Public school funding in Texas was first defined by an Act 'Gilmer-Aikin Act' of 1949 which enabled the establishment of a minimum foundation program....
7 Pages (1750 words) Case Study

Bahrains Financial Markets: Market Access and National Treatment

The higher the score, the greater the level of government interference in the economy and the less economic freedom a country enjoys.... Bahrain scored well in four areas: monetary policy, banking and finance, wages and prices, and property rights.... The main reasons for these are Monetary policy.... Trade policy.... It liberalized its telecommunications sector, where it had monopoly power, and reduced state power over telecommunications services prices....
13 Pages (3250 words) Essay

Doing business in emerging economies

This growth was mostly in the private sector and has forced market fundamentals to change to address gaps and inefficiencies of state-owned enterprises.... It is advocated as the country which presents a golden opportunity for businesses to expand and increase their profits....
12 Pages (3000 words) Essay

Monetary and Fiscal Policy in the Euro Area

However, considering the strategy requirements towards the arrangements of pensions, labor or capital market, the fiscal policy, the policies of taxes and expenditures, remains under the control of the individual state governments of the member countries.... The Economic and Monetary Union (EMU) of the EU covers the dexterity of the economic as well as fiscal policies, a common monetary policy in the euro area with the provisions of the common currency, the euro....
36 Pages (9000 words) Essay

Statutory Regulations and Controls in the UK

The ideological conflicts which had been It is in this backdrop, we analyze the factors leading to the crisis and the efficacy of the rescue and stimulation packages introduced by the UK government to improve the situation.... The habit of borrowing by the individuals and corporate bodies ingrained predominantly in the US culture at a staggering level which over the period of time made the financial structure in the country vulnerable....
11 Pages (2750 words) Essay

Factors Affecting the Recent United States Economic Growth

It was claimed that this fund was supposed to be allotted for financing the expansionary fiscal policies of the country from 2010 to 2011.... The Federal as well as the state government… The country experiences high productivity and its gross domestic products are substantially high relative to most of the nations in the world.... In order to set everything in the right state, the U.... Some of these funds were utilized by the state federal government for purchasing equities of banks and some industrial corporations....
20 Pages (5000 words) Research Paper

Increasing Inflation & Corruption in the Indian Growing Economy

nbsp; While discussing, the fiscal & monetary policy, we shall examine the sequence of events, that eventually led India to follow the path of economic reforms.... This paper 'Increasing Inflation & Corruption in the Indian Growing Economy" focuses on the fact that India, has witnessed phenomenal growth in the last two decades....
9 Pages (2250 words) Research Paper

The Effects of Globalization on the Non-Profit and For-Profit Organizations

Conversely, the process of globalization affects the development of both the country and the company.... Commentators use the term to refer to recent important changes in the global economy; particularly the changes in transportation and technology, as well as increased internationalization of commodity flow and financial flow and transition of the global market as the main competition arena.... n recent decades, the globalization process has defined the development of the global economy....
6 Pages (1500 words) Coursework
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us