By Paul Lashmar
The US Senate has accused the Isle of Man, the Cayman Islands and other offshore havens of facilitating tax evasion that costs other countries billions of pounds every year.
Australian property investors are sending huge amounts of investment offshore in search of higher returns and diversified portfolios.
Research conducted by real estate money management firm Jones Lang LaSalle found that Australian investors poured a whopping $US5.3 billion ($A7.06 billion) into overseas real estate in the first half of this year, up from only $US1.2 billion ($A1.6 billion) in the first half of 2005.
The markets have been on a steady rise since bottoming out in mid-July. Much of this relates to the markets belief that the economy and housing market is in for a soft landing. Basically, the market has been priced on the assumption that Federal Reserve Chairman, Ben Bernanke and the Federal Open Market Committee (FOMC) are finished raising interest rates, the housing market will soften, but not collapse, energy prices will not move higher and that inflation will abate as the economy moderates. Have the markets been priced for perfection? If so, we could be in for a wild ride over the next few months and the beginning of 2007.
Just a few weeks ago, the Amaranth hedge fund flew investors in to gloat about its incredible year to date performance. Their 30% gain since January had beaten the stock market hands down and energy trader Brian Hunter was being hailed as a market guru.
In a clear sign that United Kingdom tax authorities are keen to crack down on the tax practices of high-rolling hedge funds, GLG Partners Services Ltd., a Cayman Islands entity that distributes hedge funds run by GLG Partners LP, has settled a probe by British tax officials.
Continue reading "British Tax Police Look Hard at Hedge Funds"
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