Obama proposal angers low-tax countries

Several low-tax nations highlighted by Obama in his proposed crackdown on tax
avoidance by US multinationals say they are offended by the US president’s

‘We’re not happy,’ said Jan Kees de Jager, the Netherlands’ finance
secretary, in the Financial
. ‘We have a very transparent policy and we’ll work with the US. I
expect there’ll be a clarification [by the US administration] and we’ll not end
up on lists like this in future, between Bermuda and Ireland.’

The Netherlands has a corporation tax rate of 25.5% on average by world
standards. The tax rate is not used as the main enticement for foreign firms.
But it has no taxes on capital gains and low taxes on dividends, making it an
attractive place to domicile a subsidiary holding company.

The Cayman islands warned of the dangerous consequences of the proposed
changes, including inefficiencies in international trade.

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