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Cao Honghai of Wuxi Jiangsu Took Over 2 Companies

Cao Honghai, a newly rich man in Wuxi, Jiangsu, was ordered to take over the company at the age of 27 and is now worth 4.6 billion. Life took over the company, now worth 4.6 billion.

 

Cao Honghai of Wuxi Jiangsu

Entrepreneurs emerged in the private economic market

As the saying goes, the waves behind the Yangtze River push the waves ahead. With the development of the times, a large number of young and promising entrepreneurs have emerged in the private economic market. 

Compared with the traditional entrepreneurs of the older generation, these young soldiers have they have a sharper sense of smell and insight into new things, and their appearance has injected infinite vitality and vitality into the development of the private economy.

 

Jiangsu Wuxi

In this issue of "Biography of Old Horse Business Legends", the big name in the business world brought to you by the editor is Mr. Cao Honghai, an outstanding young entrepreneur from Wuxi City, Jiangsu Province. 

It is reported that Mr. Cao Honghai's personal wealth mainly comes from the high-tech enterprise at the helm of him - Wuxi Chemical Equipment Co., Ltd. 

It is included in the rich list, but we calculated based on the existing reliable data and found that at present, Mr. Cao Honghai's personal worth is conservatively estimated to have exceeded 4.6 billion yuan. Then, Lao Ma will lead everyone to get to know this outstanding Wuxi private entrepreneur.

 

Early experiences

He is a model worker in Jiangsu Province and Wuxi City, a young and middle-aged academic and technological leader in Jiangsu Province, the second prize of the Ministry of Education's Science and Technology Progress Award, and the first prize of China's industry-university-research cooperation innovation achievements. 

Award: the third prize winner of National Energy Administration Science and Technology Progress Award.

In July 1977, Cao Honghai was born in an ordinary working-class family in Wuxi County, Jiangsu Province (now Xishan District, Wuxi City). 

His father, Cao Qisheng, was one of the earlier batch of entrepreneurs in Jiangsu to go to sea to do business after the reform and opening up. Cao Honghai grew up in a relatively wealthy family. After graduating from high school, he was sent to Canada by his father to study.

 

 

Cao Honghai

The origin of the Cao Honghai family and Xizhan shares can be said from 25 years ago. In 1997, the Wuxi Chemical Equipment General Factory, which was originally a collectively-owned enterprise, was insolvent and on the verge of bankruptcy due to poor management. His father, Cao Qisheng, led the factory. 

More than 80 workers of the company raised funds together, took on the debt owed by the factory, and took over the management responsibility of the factory, thus embarking on the road of entrepreneurship.

 

Entrepreneur in China

In danger

In 2004, Cao Qisheng was in poor health, and Cao Honghai, who was studying in Canada, resolutely interrupted his studies after receiving the invitation from his father, and was ordered to take over the banner of enterprise management from his father. 

At the time of taking over, the company was still small in scale, with poor profitability and uncertain development prospects. The outside world also maintained a skeptical attitude towards this 27-year-old "young marshal". 

Cao Honghai introduced the innovative ideas and methods he learned from abroad into enterprise management, insisted on developing new technologies and new products, and took the development path of scientific and technological innovation.

 

 

Cao Honghai defied public opinion and invested a lot of money in R & D

He defied public opinion and invested a lot of money in the research and development of high-efficiency heat exchange equipment. 

After day and night, he led the team members to overcome many difficulties and finally created a sintered high-throughput sintering type with completely independent intellectual property rights. 

The heat exchange tube products broke the monopoly of foreign companies in one fell swoop, successfully filled the gap in the domestic market, and gradually established the industry benchmark status of Tin Packing Co., Ltd.

 

Grow and develop

Perhaps due to his years of overseas study experience, in terms of the market, Cao Honghai adheres to the development route of "internationalization", takes Europe as a breakthrough, and gradually extends the market of tin equipment shares to many developed countries such as the United States, Canada, Singapore, Japan and so on. 

When faced with the "encirclement and suppression" of powerful foreign companies, he chose not to back down, but to continue to increase investment in technology research and development, and to fight to the end with these foreign rivals, for "Made in China" and "China" The "creation" force went out to sea and made an immortal contribution.

 

 

Tin Packing Shares

Now, since Cao Honghai took the helm, after nearly 20 years of deep cultivation and precipitation in the industry, Tin Packing Co., Ltd. has gradually grown into a world-leading metal pressure vessel R&D, design, manufacturing, sales and related technical services and overall solutions supplier. Its products are widely used in petrochemical, fine chemical, natural gas, marine engineering equipment, nuclear energy, solar photovoltaic and solar thermal power generation and other fields.

 

Highlight moment

On September 20, 2022, Cao Honghai led Tinzhan Co., Ltd. to successfully land in the capital market and successfully listed on the Shenzhen A-share main board. 

The success of this listing not only opened a new page in the history of enterprise development, but also made Cao Hong a success. Since then, Hai has successfully entered the ranks of "billionaires". 

After taking over the company for 18 years, he ushered in a "highlight moment" belonging to his business era. 

As of the press release of Lao Ma, the total market value of tin equipment shares has exceeded 6.5 billion yuan.

 

 

Tin outfit shares listed on Shenzhen Stock Exchange

According to the information disclosed in the low-key prospectus document of the tin equipment shares to the Shenzhen Stock Exchange, before this listing, Cao Honghai directly held about 78.75% of the company's shares as a natural person and had absolute control over the company. 

After the issuance of new shares to dilute, this figure has dropped to about 59.06%. 

Calculated based on the current share price of tin equipment, Cao Honghai’s personal worth has skyrocketed by about 3.9 billion yuan during this listing journey.

 

Tin Packing Shares

In addition, we also reviewed the financial reports of Xizhuang Co., Ltd. in the past six years. The data shows that from 2017 to 2021 and the first half of 2022, Xizhuang Co., Ltd. has achieved net profit of 47.58 million yuan, 83.41 million yuan, and 1.67 million yuan. 100 million yuan, 193 million yuan, 229 million yuan and 128 million yuan. Calculated based on the value of the shares currently held by Cao Honghai, plus the dividends corresponding to this part of the net profit, at present, Cao Honghai's personal worth should be at least 4.6 billion yuan or more, which also just proves that we are in the article. The conjecture about its worth data at the beginning.

 

 

Cao Honghai and Entrepreneurship

For entrepreneurship itself:

Firstly, we must have a keen sense of smell to detect the business opportunities hidden around us.

Secondly, we must have the courage to be the first to put our ideas into action.

Thirdly, we need to have a clear and clear understanding of ourselves and the company. Positioning, understand what you are good at and what you want, success is not accidental.



 

Tax Havens Around the Globe

The high-profile global minimum corporate tax negotiation has ushered in important progress. The Organization for Economic Cooperation and Development (OECD) announced on July 1 that 130 countries and jurisdictions around the world have agreed to set the global minimum corporate tax rate at 15%. As a result, these well-known tax havens, including the Cayman Islands, Bermuda, and Luxembourg, will lose the advantages of low-tax policies.

 

Tax haven

What is Tax haven?

Let's take a closer look at what a "tax haven" is, and how it formed in history and its causes and processes. 

In response to the pressure exerted by major global economies and international organizations, let's take a look at the "tax haven". How Heaven" responds.

“It’s a Caribbean paradise, the Cayman Islands, with sun, sea and cocktails, but a few other things like, a lot of money, big corporations and zero taxes.”

 

This is a narration from Britain's Trillion Pound Island- Inside Cayman, a high-scoring BBC documentary, Uncovering Cayman. When local residents were asked "Why is Cayman Island so rich without any industry", whether it was a taxi driver, a real estate agent, or the heir to the lord of the manor, they all answered in unison and proudly:  (Cos Cayman is the Tax Heaven.) "Because this place is Tax haven!"

Tax haven


 

What is a tax haven according to the Organisation for Economic Co-operation and Development (OECD)?

As per OECD a country can be called a "tax haven" if it facilitates non-resident taxpayers and becomes a place for non-resident taxpayers to evade taxes in the country of their residence. 

The main reason for its formation is that in the process of economic globalization, the "offshore financial market" avoids heavy taxation and avoids supervision.

 

Related to tax havens, let's take a look at "offshore"

"Offshore company" means that the investor's company is registered in an offshore jurisdiction, but the investor does not need to be there in person, and the company's business can be carried out directly anywhere in the world. Generally speaking, the main purpose of setting up a company in an offshore center is to avoid tax. 

The reason why this type of offshore center is also called a "tax haven" is because it is different from the commonly used practice of levying taxes on the company's turnover or profit. 

Jurisdictional governments only charge an annual management fee to offshore companies, and beyond that, no taxes are levied.

 

Corporate tax havens

What are the characteristics of tax haven?

After understanding the related concepts of "tax haven" and "offshore", let's look at the characteristics of tax haven. 

The International Monetary Fund has launched an investigation project to evaluate "tax havens". 

The survey report summarizes the overall situation of global tax havens and so-called offshore financial centers with three characteristics:

 

I. Financial institutions in these countries mainly engage in business with non-local residents 


II. The external funds and liabilities of these economies are much higher than the internal funds and liabilities. 

This feature is obviously directly related to Article 

1. When your customers are mainly non-local residents, the natural amount of external funds greater than the amount of internal funds;

 

III. All of these so-called financial centers offer low (or zero) taxes, light financial regulation, and strictly confidential banking information

Similar to the Cayman Islands, there are many offshore financial centers called "tax havens" in the world. They are either located in the vast sea, or they are unique around big countries and mainstream tax systems, mainly including the British Virgin Islands, Bahamas, Bermuda, Seychelles, Samoa, Isle of Man, as well as Luxembourg, Ireland, Belgium, Austria, etc.

 

According to the survey and statistics of the Tax Justice Network, a British research institution, the total assets transferred to tax havens by major countries in the world for tax avoidance are about 21 trillion US dollars (the cumulative total of asset transfers from 1970 to 2010), accounting for the global wealth. 8% of the total.

 

Offshore financial centers

Today, the economic scale of "offshore financial centers" has grown to an extremely large scale. 

The economic strength of these regions (at the reporting level) even exceeds the GDP of many countries, becoming a force that cannot be ignored in the global economy.

 

Cayman Islands

Taking the Cayman Islands as an example, the land area is only 264 square kilometers, about a quarter of that of Hong Kong. 

The total population is only 64,174, and the per capita GDP is as high as 85,477 US dollars, far exceeding the minimum standard of developed countries (12,055 US dollars) (reference World Bank 2018 data). 

Tax haven Cayman Islands


Such a wealthy "small land" is the fifth largest financial center in the world after London, New York, Hong Kong and Tokyo. There are more than 100,000 companies registered on the island (far more than the population), including more than 700 banks, more than 800 insurance companies and nearly 10,000 hedge fund institutions.


With more companies registered than the local population, why is the Cayman Islands a “tax haven”?

You may have heard of the Cayman Islands, a world-renowned tourist destination with some of the best diving experiences. In the Caribbean waters where the poor are rife, the Cayman Islands are incomparably rich. 

The residents of the island are all rich, and the per capita annual income in 2020 is as high as 85,000 US dollars, which is about 530,000 yuan.

 

Financial services and tourism are the main sources of local economic income. Since many countries around the world have registered companies here, the Cayman Islands has also become the fourth largest offshore financial center in the world. 

Coupled with various preferential and loose policies, the Cayman Islands is also known as a "tax haven". Why?

 

The old rules, I would like to ask you readers to use your little hands to make a fortune, give the author a free like and follow, thank you.


Let's start with an introduction to the Cayman Islands. The Cayman Islands is a British Overseas Territory consisting of three islands. They are Grand Cayman, Little Cayman and Cayman Brac.

 

Due to its remote location, the society of the Cayman Islands has been very stable and harmonious since the national liberation in 1835. With the development of the times, the Cayman Islands has gradually become a "tax haven".

 

According to relevant statistics, the population of the Cayman Islands is 64,000, but the number of companies registered on the island has exceeded 100,000, which is much larger than the local population. As for the reason why the company is registered here, everyone must understand that it is for tax avoidance.


The reason why the Cayman Islands is a "tax haven" is that the local laws and policies on taxation are very loose. There is no direct tax, that is, personal income tax, property tax, corporate income tax, etc.

 

How to avoid tax through Cayman Islands? 

To give a simple example, Company A registered subsidiary B in Cayman, and Company C asked Company B to buy 1 million goods. 

Assuming that the profit is 200,000 yuan, then company B will only pay 800,000 yuan (cost) to parent company A, and then company A will ship the goods directly to company C.


After the transaction was completed, the operating income of Company A was only 800,000 (originally 1 million), and the income tax of 200,000 was reduced. However, due to the tax exemption of the registered place of company B, the income of 200,000 does not need to be taxed, and it is actually packed into the pocket. 

When a company is large enough, this tax avoidance method can save a lot of operating costs.

 

In 2015, the State Administration of Taxation calculated a set of figures that each year, the amount of tax lost due to "tax havens" exceeded 30 billion yuan. In the US, the figures are even more exaggerated. 

U.S. tax law requires companies to pay a minimum tax of 21% on their foreign profits. But a song through the practice of overseas tax avoidance, three years to avoid 3.1 billion US dollars in taxes.


Therefore, the tax-free policy of the Cayman Islands has attracted many foreign companies to register companies here. 

A company registered locally is an offshore company, that is, such a company is registered in Cayman, but does not carry out substantial business here.

 

The reason for the tax exemption of the Cayman Islands has to start with a shipwreck. 

In 1794, a British fleet ran aground near the Cayman Islands. The islanders rescued the crew, who happened to be a member of the British royal family.

 

In order to thank the islanders for their kind deeds, the then British King George III ordered the residents of the Cayman Islands to not pay taxes and join the army. 

By 1978, the United Kingdom issued a Royal Decree permanently exempting the Cayman Islands from tax obligations.

Moreover, for exempted companies registered in the Cayman Islands that do not conduct business on the ground, Cayman provides a guarantee of no income tax for 20 years.

Exempted trust companies can obtain a guarantee of no income tax for 50 years. At the same time, registration in the Cayman Islands is also more conducive to the listing of enterprises. 

Coupled with less foreign exchange controls, more and more companies are going to Cayman to register.

 

Of course, it should be reminded that there are indeed some reasons why companies are registered in the Cayman Islands to avoid tax, but for some companies, tax avoidance is not necessarily the main reason. For example, some companies put their registration in the Cayman Islands mainly for the convenience of listing.


Also, being registered in the Cayman Islands does not mean that the company or business is foreign. 

Because their main business is still in their own country, they are still regarded as domestic enterprises.

 


Delaware

Back to its roots: Delaware was the earliest modern tax haven

Such a huge "tax avoidance" economic system is by no means achieved overnight, and the source of their formation is obviously not these small island countries on the ocean, but from two mainstream capitalist countries, the United Kingdom and the United States.

 

State of Delaware in USA

After the second industrial revolution, the economies of old capitalist countries such as Britain and France gradually declined, and the American economy began to rise. 

By the end of the 19th century, the total industrial output value of the United States had jumped to the first place in the world, and private enterprises had also developed by leaps and bounds. 

But many American businesses face the painful reality that corporate taxes are too high. 

These external environments created the world's earliest modern tax haven - Delaware, USA.


In 1898, the eastern state of Delaware was facing financial difficulties for the government, so the state passed legislation that greatly reduced the corporate tax and business tax for companies registered in this state. 

The state government hopes to attract foreign companies to register through this method, thereby creating growth points for the local economy and solving the government's financial difficulties.

 

Once this act was promulgated, a large number of companies poured into Delaware registered companies, and Delaware also tasted the sweetness. 

By 1902, Delaware registered companies reached 1,407, and by 1919, Delaware registered companies have reached 4,776, an astonishing increase at the time. Such a policy has also opened up a new world. 

Delaware attracts foreign capital to flow to the local area by reducing taxes, thereby driving economic development.

 

Since then, federal state governments in the United States have followed the example of Delaware and used the means of reducing in-state taxes to attract foreign capital to flow into the state, thereby driving local economic development. This routine has far-reaching influence, and the regions that have followed the best are also outside the American continent.

 

After the end of World War II, a wave of colonial independence broke out in the world, and many British and French colonies demanded independence one after another. 

Its huge momentum forced the colonial suzerain countries such as Britain and France to follow the trend of history and agree to the independence and sovereignty of these colonies. However, these colonies are usually remote, resource-poor and sparsely populated island countries (the colonies located in the mainland area broke away from colonial rule very early). 

Delaware's strategy for attracting foreign investment to develop its economy. After gaining independence, the new government passed legislation, which greatly reduced local corporate taxes and various taxes, attracted capital to flow into the local area, and promoted local economic development.

 

In short, the late 19th century and the middle of the 20th century, these two time points greatly promoted the formation of global tax havens. 

The two then continued to converge, so that they finally reached a very large economic scale. 

The development trajectory of most “tax havens” is that the colonies first gained sovereign independence from the suzerain, and then local legislatures passed legislation conducive to capital tax avoidance, enabling these regions to facilitate tax avoidance and cross-border capital flow.

 

Based on the principles of modern international law, independent sovereign countries make laws, and no other country in the world has the right to interfere, and this "principle" has also become an umbrella for tax havens. With the development of the global economy, more and more enterprises have gradually developed into multinational companies, and the flow of funds between countries has further promoted the development of "offshore financial centers" and "tax havens".

 

Condemnation and 'encirclement'

'Even if it's not the biggest office building in the world, it's the biggest tax loophole in the world'

Low tax rates or even zero tax rates have promoted the economic development and cross-border capital flow of the "tax haven" countries, but they have also eroded the fiscal revenue of the profit-seeking countries for multinational corporations. 

Research by the OECD shows that global multinationals place 25 percent of their profits in low-tax countries, and the proportion of U.S. multinationals is even higher, rising from 30 percent around 2000 to 60 percent in 2019.

 

Former US President Barack Obama "named" the Ugland House in the Cayman Islands in a speech, a 5-story office building located on South Church Street in the Cayman Islands, but provided office addresses for 18,857 companies ). He said: "During the campaign, I expressed indignation at the small building that was regarded as its own headquarters by tens of thousands of companies. I have said before that even if it is not the largest office building in the world, then he is The world's largest tax loophole." Obama said he would resolutely crack down on offshore tax avoidance and increase revenue for the US government.

 

On September 15, 2008, Lehman Brothers, the fourth largest investment bank in the United States, fell into a serious financial crisis and announced to apply for bankruptcy protection, which marked the advent of a more serious financial crisis after the subprime mortgage crisis in the United States surfaced in February 2007. This also triggered a global financial crisis.

 

When various governments explored the cause of the crisis, they found that although "tax havens" were not the root cause of the financial crisis, they provided many convenient conditions for the international flow of speculative funds, which was one of the reasons for the instability of the financial system, but also contributed to the emergence of the financial crisis.

 

After this, international organizations and governments of various countries have made heavy efforts to "encircle and suppress" tax havens. 

In April 2009, at the G20 summit held in London, the tax reform and related information disclosure of "tax havens" became an important part of the research of the leaders. 

Leaders agree to take action against uncooperative tax havens and prepare to impose sanctions.

 

Multilateral Convention on Mutual Assistance in Tax Collection and Administration

At the subsequent international conferences, the G20 and the OECD coordinated countries to issue the Multilateral Convention on Mutual Assistance in Tax Collection and Administration. 

In order to prevent multinational companies from using "tax havens" to evade taxes. 

At present, 113 countries and regions around the world have joined the Multilateral Convention on Mutual Tax Administration, including 15 non-independent sovereign jurisdictions (such as the Cayman Islands, British Jersey, British Virgin Islands, etc.).

 

In 2014, the OECD released the Standard for the Automatic Exchange of Financial Account Tax-Related Information. 

As of June 30, 2017, more than 100 countries or regions, including China, have pledged to implement the standard for automatic exchange of tax-related information on financial accounts, and 96 countries have signed exchange agreements. 

Bermuda, Switzerland, the Cayman Islands, the Virgin Islands, the Isle of Man, Cyprus, and Jersey have already exchanged information in 2017, while Malaysia, Singapore, and the Bahamas have also exchanged tax information in 2018.

 

OECD/G20 Inclusive Framework (Inclusive Framework)

In 2016, the OECD/G20 Inclusive Framework (Inclusive Framework) composed of nearly 140 economies, including China, was established to participate in the standard setting and content of "Base Erosion and Profit Shifting" (BEPS, Base Erosion and Profit Shifting). implement. 

During 2018-2020, the Inclusive Framework launched a "twin-pillar study" to address tax challenges in the digital economy. 

Pillar 1, expand the "tax linkage" rules to clarify the scope of corporate income tax collection, tax calculation and distribution in the context of the digital economy. 

The second pillar, the lowest corporate income tax rate in the world, is the expansion of the “tax haven” that the OECD has been insisting on.

 


Requirement of economic substance

Under pressure from the international community, some countries or regions known as "tax havens" have also introduced countermeasures. For example, at the end of 2018, jurisdictions such as the British Virgin Islands, the Cayman Islands, Guernsey, and Bermuda have announced new economic substance bills, which put forward “economic substance” requirements for companies registered or operating in the region (that is, the operating activities, not shell companies).

 

In addition, in February 2019, the Cayman Islands announced the "Guidelines for the Implementation of Cayman's Economic Substance". For those shell companies that cannot meet the economic substance requirements, they will be fined, forced to cancel, or exchange information directly to the relevant government tax Organs. 

False declarations or misleading statements will be fined or the person responsible will be held criminally responsible.

 

Where do tax havens under the global tax agreement go?

The new crown epidemic has caused a serious impact on the global economy. The economy determines the government's fiscal revenue. As one of the important sources of fiscal revenue, the government can properly guide and adjust the operation of the social economy by using tax levers. 

On March 31 this year, the Biden administration pointed out in the "Made in the United States Tax Act" that it will mainly raise corporate income tax to raise funds for infrastructure plans. 

Although the relevant tax increase clauses in the bill were not passed, the United States took the lead in "tax increase". It has become very obvious and is considered to be the catalyst for a new round of global tax hikes.

 

G7 proposal for the lowest global corporate tax rate

Highlights of the G7 proposal for the lowest global corporate tax rate in June include:

i. Vigorously support the "dual-pillar" efforts under the current G20/OECD inclusive framework. Pillar one is to address the tax challenges brought about by globalization and the digital economy, and pillar two is to introduce the lowest corporate income tax rate in the world.

 

ii. For Pillar One, reach consensus on the allocation of taxing powers and remove all existing Digital Services Taxes and similar arrangements while introducing new international taxation rules;

 

iii. For Pillar Two, commit to a minimum global corporate tax rate of at least 15%.

 

iv. It is crucial to clarify that the two-pillar negotiations go hand in hand and hope to reach an agreement at the G20 Finance Ministers and Central Bank Governors meeting in Venice on July 9-10.

 

If the agreement is implemented, in theory, the "tax haven" will cease to exist. Because under this premise, once the tax rate paid by a company in a country is lower than the minimum tax rate, the government of the country where its headquarters is located can require it to pay tax based on the minimum tax rate level. For example, if the Cayman Islands still implements a zero tax rate, even if a company headquartered in the United States goes to the Cayman Islands to register, it still has to pay a 15% tax to the U.S. government. 

If the company chooses to pay a tax rate of 12.5% Ireland pays tax, it needs to pay the remaining 2.5% to the United States.

 

In response to the bill, some low-tax countries immediately raised objections. Irish Finance Minister Donoghue once said, "We have very significant reservations about the lowest global tax rate at this level, which means that only certain countries, certain economies of size can profit on this basis, and we have Strong concern." 

Mathew Gbonjubola, Nigeria's ambassador to the OECD, also said that the 15% tax rate will not help African countries very much and is likely to bring about tax base erosion.

According to the Financial Times, tax havens and investment hubs such as Ireland, Switzerland and Barbados are widely expected to reject the deal. It can be seen that this historic agreement has indeed caused a big blow to the “tax havens” with low or zero tax rates. 

The good days of scouring the wool of a big country may be gone forever, and blind resistance is tantamount to hitting a stone with an egg. 

Only by embracing change, carrying out domestic tax system reform, and promoting the transformation of economic growth mode is a better way out.

  

Many large companies are registered in "tax havens", why does the country not restrict them? Can small companies learn?

As an important source of the country's economy, tax has always been a key factor in measuring the country's economy, and tax evasion is strictly prohibited for the country. It is precisely because of this that how to reasonably avoid taxation to avoid this situation has become the goal of large companies. 

But there is such a place on earth, which is called a tax haven. Many large companies in our country have registered here, and many well-known companies in the world have also settled here. This place is the Cayman Islands. So why is the well-known tax haven not restricted by the state? Can smaller companies follow this model?

 

1. The "tax haven" Cayman Islands

The Cayman Islands and the surrounding areas in the Caribbean Sea are particularly special. Compared with ordinary people, the Cayman Islands is an excellent tourist attraction, especially the local water is clear and transparent, which is very popular among diving enthusiasts. And the per capita annual income of the Cayman Islands far exceeds that of neighboring countries and regions, all of which benefit from the status of the "tax haven" of the Cayman Islands.


The main income of the Cayman Islands is tourism and financial services, and the prosperity of the financial services industry is also the reason why the Cayman Islands can be a "tax haven". Today, the Cayman Islands, which has a population of only 64,000, has more than 100,000 registered companies. The reason behind this is that the Cayman Islands is a place where taxes can be reasonably avoided.

 

Why is the Cayman Islands a "tax haven"? 

The reason is that the Cayman Islands does not tax everyone, and that alone has led to a large number of companies and businesses registering here. 

The reason why the Cayman Islands will be exempted can be traced back to the 18th century, when British expeditions ran aground near the Cayman Islands, and the residents of the Cayman Islands rescued these people, which made the then British King ordered to exempt Cayman. 


With the end of World War II, many British colonies began to become independent, and the Cayman Islands were more free at this time. At that time, the global financial market was gradually rising, and the Cayman Islands decided to attract capital to revitalize the domestic economy. 

The means of attracting foreign economies is to exempt from taxation, and it is precisely the Cayman Islands that has become today's "tax haven".

 

2. Multiple companies are registered here, why does the country not restrict it?

Today, this world-renowned "tax haven" has attracted more than 100,000 companies to register here, many of which are registered in the Cayman Islands. It is an island country with an area of ​​less than 200 square kilometers and a population of less than 70,000 can actually attract so many domestic companies to register here because of its unique tax-free policy.

 

For example, Alibaba, Tencent and Baidu, the three current domestic Internet giants, are all registered in the Cayman Islands, and the recently very lively real estate industry, Evergrande and Country Garden are also registered here. These companies registered in the "tax haven" Cayman Islands, the annual loss of tax revenue to my country is as high as 40 billion yuan.


In addition to my country, many foreign companies are also registered in the Cayman Islands, and Google can avoid tax by more than 1 billion US dollars every year through this method. So in the Cayman Islands, which has such a big impact on state taxation, why doesn't the state restrict it? Can a company registered in the Kaiman Islands be prohibited from operating in the country?

 

In fact, not only foreign countries, but even my country has its own "tax havens", such as Kashgar and Khorgos in Xinjiang. These places also have policies to exempt tax. And free market trade makes it impossible for my country to easily allow an enterprise to be prohibited from operating in the country just because it is registered abroad. However, the country is already making policy adjustments to prevent the loss of tax revenue.

 

 

3. Can a small company register in a “tax haven”?

With the demonstration of large enterprises, can small enterprises and companies follow the example of these large enterprises and register companies in the Cayman Islands as a means of reasonable tax avoidance? Actually the answer is yes. However, it is not recommended for small businesses to do this because it is not cost-effective overall. To register in the Cayman Islands, you must first apply for a bank account in the Cayman Islands and pay various service fees.

 

And many large companies are registered in the Cayman Islands, tax avoidance is only one aspect, on the other hand, they can be registered overseas, which can be more convenient to list, so it is recommended not to register in the Cayman Islands for small and medium-sized enterprises. Otherwise, you may end up spending more money than you should pay in taxes, which will outweigh the gains.

 

Can an Asian company registered in the Cayman Islands still be called an Asian company?

In fact, because their business is still in Asia, they are essentially Asian companies. At present, countries around the world are implementing policy restrictions on the "tax haven" Cayman Islands, and the "tax haven" may cease to exist in the future.



 

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17 Truth and Propaganda about Caste System of Hindus in India (Frequently Asked Questions)

The Indian caste system is one of the oldest social structures in the world. The system of dividing Hindus into powerful groups based on their karma (work) and dharma (Hindi word for religion, but here it means duty). Hindu scholars believe that this karma based system is several tens of thousands of years old, while others also generally believed to be more than 3,000 years old.


Q1. Are castes and varnas the same?

Ans. Caste and varnas are technically different but used as the same these days. Castes represent differentiation form one another creating whole different entities after differentiation whereas varnas represent integral components of the whole.

Infographics diagram showing different between Caste and varnas among Hindus



Q2. Is it true that according to Hinduism no one can change Hindu caste but can change religion?

Ans. This is untrue that according to Hinduism no one can change Hindu caste but can change religion. But it is true that according to the Indian constitution no one can change Hindu caste but can change religion. This is as if an OBC wants to become an SC he is disallowed by the law and constitution as then he would take SC reservation also. Thus, caste discrimination can never be found in Hindiuism but in the Indian constitution.

Hinduism allows even the people coming in form other religions to join any caste then it is impossible that any caste can be disallowed by the religion. Recently, a former Muslim Waseem Rizvi became a Hindu and became a Brahmin. 

A BBC interview posted online on 22 September of 2022 shows a Muslim Naushad became Hindu and again became a Muslim and got support form all Jats even when he reverted to Islam. The interview shows that on being asked that people joining Hinduism have a problem of which caste they would get, the person replies that anyone can take any caste of their own choice.

It is also true that Hinduism is not a politicized religion with any central authority as Pope or likewise. Thus, no one objects but accept any caste anyone wants, and are happy with any religion a person want for themselves.



It is also that in Hinduism it is not a religious duty of Hindus to try to convert any person to being a Hindu. Thus, they willingly never want anyone to convert to their religion as there is no motivation, but also do not protest if anyone does. There is only motivation to serve all humanity, all Godly creation that is what is Sanatan and this is the reason why they worship everything as a gratitude. This worship is of a gratitude nature and not of worshiping the almighty where there is worship of the supreme power, as in case of cow worship due to its facilitating milk just as their mothers did, and hence called mother cow. Left sets a risible narrative that cow worship is worship of cow god, which wise Hindus only laugh away.

 

Q3. How was the Hindu caste system born?

Ans. Caste system was the natural outcome of people carrying out their ancestral work and living in the communities performing the same work. But the left ideology is that Manusmriti, which is generally considered to be the most important and authoritative book in Hindu law and which dates back to at least 1000 years before the birth of Christ, understands and upholds the caste system as the basis of the system and organization of society.

The fact is that there are accusations that the left has manipulated subordinate scriptures according to their requirements and try to ascertain their worth according to their requirements.

Left is of the habit of setting bogus narrative which Hindus never believe and can never believe. It is against the very rudimentary Hindu ideologies. Here, only Hindus are not ascertaining their religion but only the left people are.

Fact is that the most well known Rishi was a kshatriya viz. Vishwamitra, proving not dynasty but karma was caste determinant. So what we find in Hinduism is totally different form the propaganda.

 

Q4. How many castes are the there in Hindus?

Ans. The caste system divides Hindus into 4 groups:

  1. Brahmins
  2. Kshatriyas
  3. Vaishyas
  4. Shudras

Many believe that the groups are derived from Brahma, the Hindu God of nature. 

Being carried away by the left propaganda and other religions take it very literally.

Diagram showing caste based system in Hindus


 

Q5. How does left represent hierarchy in Hindus?

Ans. Left attempts to show the division based on karma as division based on dynasty, creating a hierarchy, rather than equal segments as:

  1. At the head of the hierarchy were Brahmins who were mainly teachers and intellectuals and believed to have descended from the head of Brahma.
  2. Then the Kshatriyas, or warriors and rulers, who are supposed to have come from him.
  3. The third place went to the Vaishyas, or merchants, who were created from his thighs.
  4. At the bottom of the heap are the Shudras, who came from the feet of Brahma and did all the evil work.

 

Q6. How does propaganda entities show Indian caste system?

Ans. The propaganda entities show Indian caste system as:

The castes are divided into about 3,000 castes and 25,000 sub-districts, each according to its function.

Outside the framework of these Hindus are the achhoots, the Dalits or untouchables.

The fact is that there may be any number of castes and sub-castes but in Hindus there is no word as dalit. This word has been tossed by the religious conversion enthusiasts and political nexus.  

Caste system narrative by media and left


The untouchability has never been in Srimad Bhagwad Gita, Vedas and the Upnishads. So it was almost impossible to set a bogus narrative as these are religious books. So to establish their narrative left brought in only memories by any of the saintly people, and that too manipulated by them. When such scripts are no how in synchrony with the Hindu scriptures i.e. Srimad Bhagwad Gita, Vedas and the Upnishads, they can never be Hinduism even if we assume it to be really by some sort of Hindu saint, and not manipulated by the left.

Hindu God incarnation Lord Krishna himself proved equality of all castes or varnas, and that they are based on karma and not dynasty. The Indian constitution proves otherwise.

Lord Krishna was:

  1. Born as Kshatriya
  2. Traded mil and milk products as a Vaishya
  3. Drew Arjuna's Mahabharat Chariot as a Shudra
  4. Advised Arjuna (Gita Updesh) as a Brahmin Guru

 

Q7. Is the Hindu caste system legal?

Ans. The constitution of independent India abolished caste-based discrimination. In an attempt to redress historical injustices and provide a level playing field for those who did not practice its culture. The authorities imposed restrictions on discrimination in government services and educational institutions for the Scheduled Castes and Tribes, the lowest and upper castes in the 1950s. 

The above is as propagated while the fact is that in Hindu religious text reference there is no discrimination while constitution creates this discrimination that is why different treatment to different castes in its schedule. This is how caste system got legally established.


 Q8. When did OBC quota came into existence on the basis of caste?

Ans. In 1989, the quotas were extended to include a group called OBCs (Other Backward Classes) who fall between the traditional upper and lower castes.

 

In recent decades, due to the spread of secular education and increasing urbanization, the influence of race has diminished somewhat, especially in communities where people of different races live together and marrying, is increasing.

In some southern states and the northern state of Bihar, many people started using the same name after the social reform movement. 

Despite the changes, caste identity remains strong and surnames often reflect the caste a person belongs to. 



Q9. How does the Hindu cast system work?

Ans. For centuries, caste has determined almost every aspect of Hinduism and social life, with each group occupying a place in this complex hierarchy.

Rural communities have long been organized along caste lines since Mughal invasion. Mughals did it according to their divide and rule policy as they were very few in number and had to divide the society. British needed the same mass control so followed the suit.

Upper and lower castes almost always live in separate areas, wells are not shared, and Brahmins are not allowed food or drink. descended from Shudras, a person could marry only within his family. This system gave many privileges to the upper castes while supporting the opposition of the lower castes by the privileged groups.

 

Q10. Are Dalits in India supported by all Hindus or discriminated with?

Ans. Often criticized for being unjust and inflexible, the caste system remained unchanged for centuries since Mughals, locking people into a set of social rules that it impossible to escape. However, despite the obstacles, some Dalits and other low-income Indians, such as:

  1. BR Ambedkar, publicized to be the author of the Indian Constitution
  2. Draupadi Murmu (ST), current president
  3. KR Narayanan who became the country's first Dalit President, rose up in 'a high position in the country

This all happened with absolute Hindu support only.


Q11. Can there be any caste discrimination possible?

Ans. Of course there can be caste discrimination as there is nepotism everywhere. If anyone gets a good work they want their close relatives to get that good and beneficial work forever. But as far as religion is concerned it is disallowed. Nepotism is humane.

There are accusations on bollywood, similarly there are claims on higher judiciary that only about a couple of hundred dynasties are always chosen as judge by the collegium. Thus, there is possibility of people holding beneficial castes for themselves and hence dynasty wise caste system, in defiance of the tenets of religion.


Q12. How does politics affect the caste system in India?

Ans. Politics transforms the varna system to the caste system for political gains. When gains are attached to something then it becomes inevitable. It is in the political interest of the politicos to create caste discrimination and then prove it, otherwise they lose ground. So its a matter of their existence. 

 

Some caste based activities:

In recent years, many communities have demanded recognition as OBCs. 

In the year 2015 there were and massive protests by the Patel community in Gujarat demanding access the limits of caste.

In the year 2016 there were violent protests by the Jat community in Haryana.

Jat protesters block roads in Haryana state, northern India. At least 18 people have died in Jat community protests in Haryana

Both are politically prosperous castes, but they justify their demands for caste restrictions by saying that most of their communities are poor and suffering.

Some say that the seizure process would have disappeared if it were not for the politicians who make this fire happen regularly. 

In the general election, many people still vote candidates of own caste seeking electoral benefits. As a result, what was intended to be a short-term action plan to get the majority of people out of office has become a vote-bank creation exercise for many politicians.

 


 Q13. Have any Hindu saints been from Shudra caste?

Ans. Author of Ramayan is Maharshi Valmiki which is in shudra category. In olden days varna was determined by karma or the work one performed. However, to this also fake news mongers try to undermine shudra for reinforcing the political scenario they created as Wiki pages, etc.

Mahabharat author Vyas of his vyas community was a shudra as varna was not determined by birth but by karma or deeds performed.

The irony of politics is that people under shudra community are taught to claim that their ancestors wrote Indian Constitution which was written by 3 member British cabinet because of Dr BR Ambedkar presiding one committee while all others presided by Dr. Rajendra Prasad. While Dr. Ambedkar himself said that people say he wrote constitution but he never wrote the constitution and would burn it at the very 1st chance he got.

Such is the impact of propaganda that claiming that never existed (ancestors being authors of Constitution) and disowning (ancestors being authors of Ramayan and Mahabharat) the claim and giving it to Brahmins. Now why not glory become the opposite.

Though fake news mongers since the time of Mughals and Turks try to set a wrong notion that the above are Brahmin caste text. Of course any one was and is allowed to perform Brahmin work as karma is not hereditary which even continues by and large these days, except few villages which remained under Mughal and Turks impact.

Mughal and Turks got close to more authoritative people in those times and gave them more significance like Brahmins and others and neglected shudras as they being poor. Thus, caste system cropped in despite no how present in Hindu religious and guide books Gita, Vedas and Upnishads.


Q14. Are any modern Hindu saints of Shudra or backward castes?

Ans. The fact is that almost top Hindu saints in modern times are from Shudra varna

 as evident below:

Few Top Hindu Saints under SC/ ST/ OBC:

Asaram Bapu

 

Swami Nityanand

 

Swami Chinmayanand


Dati Maharaj

 

Sant Ganeshwar

 

Sadhvi Pragya

 

 

Sadhvi Ritambhara

 

Sadhvi Uma Bharti

 

 

Baba Ram Dev

 

Jai Gurudev

 

Sadhvi Prabha

 

Sadhvi Chidarpita

 

Gurmeet Sigh Ram Rahim

 

Sant Rampal

 

Sakshi Maharaj

 

SC / Dhobi Sindhi

 

SC

 

SC

 

SC


SC

 

SC

 

 

Lodhi / OBC

 

Lodhi

 

 

Yadav / OBC

 

Yadav

 

Yadav

 

OBC / Maurya

 

OBC / Jat

 

Jat

 

OBC / Kurmi Patel

 

Brahmkumari Lekhraj Bachani

 

Sindhi Baniya

 

Osho Rajnish

Ma Nirmala Devi

 

 

Jain 

Christian in Disguise (ref. Shyam Manav)


Thus, we see that those who stuck to their own religion are with glory on the top of their own religion, while those who went to others’ religion are only doing pratigya (the 22 pratigya) or becoming pasmanda.

Same way, Brahmins always stuck to their religion and hence without any reservation  are so competitive that are on the top positions in their country. This shows the proverb dharmo raskshati rakshitah live:

धर्म एव हतो हन्ति धर्मो रक्षति रक्षितः ।
तस्माद्धर्मो न हन्तव्यो मा नो धर्मो हतोऽवधीत् ।


Q15. Is there any evidence that caste based atrocities are a reality?

Ans. Caste based system has been a reality only under Mughal and Turks followed by British with they in power.

With Hindus in power it is not apparently possible as evident these days, as Shudras also called bahujan. So, people under almost 80% majority can always foil any atrocity bids, and those as propagated is not possible under such a large number of people except.

There is no verified evidence before Mughals and Turks that can prove the claimed atrocities. However, better equipped class is just better equipped and treated well by all while deprived are not, regardless of any caste or any such identification,


Q16. What is the difference between Shudra varna Hindus who convert and those who choose to stay in their originality?

Ans. The ordinary shudras who converted or who supported the concept under dalit politics, except politicians, went under heavy losses like:

  1. Lost their originality and dynasty identity.
  2. Named as dalit, which is an inferior word despite never such names imposed on any varna.
  3. The new religion never gave them the status as has been always in their original religion, like Pasmanda Muslims who are not allowed among higher castes and even never allowed to enter high firka mosquesThe same Mughal philosophy crept among Hindus as planted by them but as it has no religious reference is elapsing but not among other religion which is inherent there.
  4. The new religion considers them as really backward thereby only migrating to their new religion so branded as such, though in original Sanatan there has been no such situation except brought under Mughal and Turk influence which almost has elapsed now except for some villages.

While ordinary shudras who never converted or who supported the originality concept under dalit politics, except politicians, went under heavy benefits which can be inferred a opposite to the above damages.

This shows the text reference of Srimad Bhagwad Gita showing live as "Even death in own religion is ascent of human, while following others' religion is full of fear and cowardice"

 Again live reference:

धर्म एव हतो हन्ति धर्मो रक्षति रक्षितः ।
तस्माद्धर्मो न हन्तव्यो मा नो धर्मो हतोऽवधीत् ।


Q17. Have low caste before Mughal times ever been at the top?

Ans. Thousands of years ago, even before Christ, akhand bharat Emperor or the emperor of unified India was Chandra Gupt Maurya and was a disciple of Acharya Chanakya  who became Royal  after unifying India, the largest  Kingdom. That was the largest kingdom ever made by any Indian and hence its emperorship was the top most position ever in Indian context, and that position was held by Maurya which was treated as low caste after Mughals. The evidence shows that Maurya community was at the top while upholding his own religion, but after Mughals the community declined with Mughal and Turk impact under caste politics.

 Again live reference:

धर्म एव हतो हन्ति धर्मो रक्षति रक्षितः ।

तस्माद्धर्मो न हन्तव्यो मा नो धर्मो हतोऽवधीत् । 


Conclusion

Unbiased historians say that until the advent of Mughal era, racism was very rare for Indians, social identity was often changing, and people were able to move between the castes. Left and Abrahamic backed studies shows that the British colonial authorities imposed strict boundaries that defined India's social identity when they simplified the system with simple numbers, which are the intention to create a society with common rules that can be easily controlled. However, this is absolutely unjustifiable as there is a conflict of interest as the British would naturally never go against their interests and must diverge the mass rather than unifying them.

 


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