I'm sure the IOM Government is not at all happy at being called a tax haven after all its splendid attempts to be recognized as an international financial center of great repute, but nevertheless, $330+ million passing through the Manx economy is not to be sneezed at. This is from the HINDU Business Line.
Outflow of investment from India in 2008-09 fell by 11.2 per cent to $16.07 billion in 2008-09 from $18.1 billion in the previous fiscal. The outward direct investment (ODI) included both equity and loan.
In 2007-08, however, the total outward investment from Indian firms, including joint ventures and wholly-owned subsidiaries, had jumped 31.54 per cent from $13.76 billion to $18.1 billion. Of this, $2.22 billion came back to India from those companies as dividend, royalty and technical fees in 2008-09, which was a shade less than $2.33 billion in the previous year.
However, this amount totalled to only $723.8 million in 2006-07. This was stated by the Finance Minister, Mr Pranab Mukherjee, in the Lok Sabha on Friday.
Singapore retained the No 1 spot in the list of India Inc’s favourite investment destinations with Indian companies investing $3.6 billion in that country in 2008-09. But the investment of $3.6 billion in Singapore was a 56 per cent drop from the $8.3-billion the city-state received from Indian companies in 2007-08.
The Netherlands came next with Indian companies investing $2.77 billion in 2008-09, up from $1.93 billion in the previous financial year. Tax havens such as Cyprus and Mauritius received $2.25 billion and $1.8 billion respectively in 2008-09.
They were followed by the US with $873.58 million worth investments from Indian companies in 2008-09, the UAE ($791.78 million), Russia ($676 million), tax haven Isle of Man ($334.7 million), China ($246.03 million) and another tax haven British Virgin Island (230.48 million) in 2008-09.
Significantly, outward investment to tax havens rose significantly from 2007-08 to 2008-09.
In the case of Mauritius it went up from $1.4 billion (in 2007-08) to $1.8 billion (in 2008-09), Isle of Man ($124.97 million to $334.7 million during the same period), Cyprus (from $544 million to $2.25 billion).
However, investments to countries such as the US, the UK and Singapore fell during the corresponding period.