Grundy's Tax Havens: a World Survey, 5th ed.

• Author: Sherman, H. Arnold

Grundy's Tax Havens: A World Survey

I reviewed the fourth edition of this book some time ago -- 37 Tax Executive 107-08 (October 1984) -- and did not recommend it. It is gratifying to see Mr. Grundy has entirely rewritten the text; it is now a far better and more useful book.

The fifth edition covers 24 tax havens, including most of those which one might expect to find. Mr. Grundy points out 13 jurisdictions which he has had to leave out: of these, I only regret the omission of Singapore. Among those not mentioned in his list, I would like to have seen some reference to Uruguay (a reborn tax haven) and perhaps even St. Vincent.

In his introduction, Mr. Grundy explains the object of this new edition. He is trying to identify a jurisdiction which will provide a likely answer to the readers problem. By and large, he has succeeded as well as can be expected in a book of 100 pages.

The reference maps will help the novice; the reference table, comparing the jurisdictions covered, is a useful quick reference source. I wish the table had included a comparison of redomiciliation provisions (in and out)--often a key question when searching for a suitable tax haven as well as some indication of whether an audit is required under local law.

Perhaps Mr. Grundy is a little over-enthusiastic in his recommendation of the Bahamas as "the true universal tax haven," and in his statement that "the advisor who is new to the world of tax havens would do well to concentrate his energies on acquiring a detailed knowledge of the facilities offered by the Bahamas." He mentions the "discernible degree of social stress" which, at least in my opinion, is one of the significant negative factors affecting this jurisdiction. Although the choice of a particular tax haven is frequently a matter of opinion, I am not enamored of the high costs associated with a Bahamian incorporation, or with their out-of-date company trust laws. For that reason, the Bahamas is very low on my list of jurisdictions in which to incorporate a tax haven company. Mr. Grundy, however, has been around the international tax world longer than I have, so his opinion must be respected.

In the chapter on Barbados, specific mention of those International Business Companies that are resident in Barbados but incorporated elsewhere might have alerted the reader to a useful alternative. Concerning the same chapter, I cannot think why Mr. Grundy says that ". . . there can be circumstances where it is desirable...