Sir, – Colm Keena's article on tax havens is a timely reminder that tax havens are a scourge on society ("International response needed to tackle 'offshore' culture", Analysis, September 22nd). They suck wealth and tax revenues out of successful economies, especially in the West.
He could have illustrated his article with examples of how all successful economies have their “own” tax havens. For example, the UK and Ireland have the Isle of Man and the Channel Islands; Germany has Luxembourg, Switzerland and Liechtenstein; France has Monaco and Switzerland; Russia and the Middle East use Cyprus; South Africa uses Mauritius; the Far East has Singapore, Labuan, Hong Kong, Macau and a host of Pacific Islands, including Vanuatu, Fiji, the Cook Islands and Niue; while Bermuda and many islands within the West Indies offer their services to all comers.
Because tax revenues are being diverted to these offshore tax havens, it results in governments having to rely more and more on revenue from sales taxes and personal taxation deducted at source, putting ever more pressure on the “squeezed middle”. – Yours, etc,
DAVID McCABE,
Blackrock,
Co Dublin.