There is a very simple reason why all the traders (as well as many foreign soccer player) are now in the UK: money ! UK laws allow to legally reduce taxes payed when you are a foreign national resident but not domiciled (which means you don't plan to stay). In this case, using offshore accounts, there is a legal way for tax evasion. I believe for traders and soccer players, they know how to do that :) In the case of soccer player, the sponsorship revenues that are not in the UK would also not be taxed. Social dumping is the main reason for delocalisations from the rich countries to the developping ones.. Tax dumping works quite well between european countries, especially when you are just 3 hours away by train. What's sad is that a entire industry has concentrated to the lowest tax area, which means that this industry's global contribution to europe has been reduced. The industries that can't move will have to pay for that. I don't believe it is a fair and sustainable model for Europe. We really need tax harmonisation.

Posted by Ludovic Dubost on shkurt 08, 2005 at 05:00 MD PST #