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Nevada laws. These company’s laws have allowed foreign persons to carry on business

outside of the United States free of income tax but with a United States registered

address. Arguably, the entire incorporation is comparatively cheaper than some of the

offshore financial centers under attack by the OECD. Even more importantly, the fact

that the company is registered in the United States and the integrity of the United States

legal system as an added benefit only serves as a greater incentive for potential investors

in such companies.


Indeed, the most cogent argument, theoretically, that the established offshore centers such

as Cayman Islands, The Bahamas, British Virgin Islands, Cook Islands and Bermuda

present to clients is that their jurisdictions have the respectability and integrity of the

United States and Great Britain. Indeed, many of these centers have targeted potential

clients under the premise that their systems are arguably as strong and stable as a

developed country coupled with an added benefit of confidentiality and privacy. Hence,

it is submitted that there is a very strong aroma of double talk as the developed countries

have capitalized on the very same preferential benefits that are being challenged by the


Yet the preceding argument against the United States position can also be made against

other well-respected OECD member states. Switzerland has openly provided for Swiss

57 The United Kingdom repealed its position with regard to such companies in the very comprehensive The Companies Act 1992. Langer’ The most popular successor to the non resident U.K. company seems to be the U.S. limited liability company (LLC), which offers essentially the same cosmetics. It a tax nothing for U.S. tax purposes. Its registered office is in Wilmington Delaware and it offers essentially the same cosmetics as the former non-resident UK Company. Delaware and Nevada LLC’s are generally considered to be much more of a bargain in some cases than most of the other offshore companies and centers.’

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