Antigua and Barbuda is one of the Caribbean tax haven countries. It provides multiple tax benefits, including no tax on personal income
Mehul Choksi, involved in India’s biggest banking scam of Rs 7,080 crore, very cleverly chose a tax haven to enjoy multiple tax benefits, keeping in mind that Antigua and Barbuda has no extradition treaty with India.
Antigua and Barbuda is one of the Caribbean tax haven countries. It provides multiple tax benefits, including no tax on personal income. Also, offshore companies formed under the International Business Corporations (IBC) Act of Antigua and Barbuda are fully exempted of all direct taxes with respect to international trading, investment or commercial activities, including withholding taxes and stamp duties.
Antigua and Barbuda does not impose any export duties, except for those on lobsters, sea island cotton, sugar, molasses and fish. It means Choksi can easily multiply his money in Antigua. The government also provides a tax holiday of 5 to 15 years, with a five-year extension under certain circumstances.
The citizenship of Antigua and Barbuda that Choksi was granted last year also allows Choksi to fly anywhere as the condition of citizenship says that one is required to stay for a minimum of 35 days on the island over a five-year period. Antigua and Barbuda does not levy estate tax nor inheritance tax.
According to the information gathered by Mynation, for commercial activities like running hotels, there is a minimum tax at a rate of 1/5th of 1% of their taxable value. Other commercial properties must pay 3/4th of 1% of their taxable income. The Antigua and Barbuda government had also abolished personal income tax in 2016.
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Last Updated Jul 27, 2018, 8:47 PM IST