The secrecy category categorizes countries in terms of tax havens and offshore banking. Amongst the list Switzerland ranks the highest with a secrecy score of 76, followed by the USA with a score of 60 and third the Cayman Islands.
“Switzerland is the grandfather of the world’s tax havens, one of the world’s largest offshore financial centers, and one of the world’s biggest secrecy jurisdictions or tax havens,” said the group’s report ‘Financial Secrecy Index ‘ — 2018 Results’.
Many will wonder how Switzerland and USA got in the list. What must be realized is that the secrecy score depends on how countries help people manipulate their legal systems to launder money and protect wealth instead of taxation.
United States has continued to help people over the world in offshore financial services. It accounts for 22.3% of global offshore financial services. The US has a range of secrecy and tax free facilities for non residents which have raised the amount of wealth coming into their offshore banking sector.
The most protected countries, where offshore banking is not able to be bypassed according to local laws are the UK at a score of 42 in the secrecy level and Belgium at 44 score.
The major reason for secrecy increasing in such countries like Switzerland and USA-
- Withholding of information to poorer countries in Africa
- Not Withholding information to Richer Western Countries
- Both have a perfect recipe for tax evasion which is Strong economies with a lot of secrecy on whats going on within the country.