cayman islands

Goldman CDOs at the Caymans

Did you know CDOs are actually issued by Special Purpose Vehicles, often incorporated in tax havens like the Cayman Islands?

Tax Justice wrote up a great overview post:

In the much-publicised fraud case involving a lawsuit filed by the Securities and Exchange Commission against Goldman Sachs, it is absolutely no surprise to us to find that this deal, known as Abacus 2007-AC1, involves:

Issuer: Abacus 2007-AC1, Ltd., Incorporated with limited liability in the Cayman Islands
Co-Issuer: Abacus 2007-AC1, Ltd., Incorporated with limited liability in Delaware.

Were you aware that special purpose vehicles (SPV) were routinely created in the Caymans?

Cayman Islands Tax Haven.....may charge taxes!

Aha! Finally, the way to rid the world of offshore tax havens! Force them to collect....taxes!

The New York Times is reporting the notorious offshore tax haven, the Cayman Islands may be forced to collect taxes:

Caught in a vise of shrinking revenue and stubbornly high public spending, the Caymans averted a fiscal crisis this week by securing a $60 million overseas loan.

But the Foreign and Commonwealth office in Britain, which oversees the Caymans and can veto foreign lending requests, has delivered an ultimatum: The rest of the $284 million the Cayman government says it needs will not be forthcoming until this offshore financial center imposes spending cuts and considers some form of direct taxation on businesses here and its 57,000 residents.