Comment by dfajgljsldkjag
20 days ago
The example about the founder losing a hundred million dollars to taxes is painful to read. It makes sense why Cayman is becoming the standard now that big investors are accepting it. The old default of opening a Delaware C Corp seems like a huge trap for Latin American companies.
How could the founder manage to live his life with merely tens of millions of dollars. What a tragedy.
Did you miss the part where they paid millions to a jurisdiction where they didn’t actually conduct business? Or are you of the wealth envy “taxes as punishment” mindset that believes every dollar eared is one immorally coerced from others - because thats how your comment reads. Personally, I’d rather see that money redeployed either as local taxes or even just capital to be spent in the founders own jurisdiction.
> Did you miss the part where they paid millions to a jurisdiction where they didn’t actually conduct business?
You mean besides opening a company in said jurisdiction? They took advantage of said jurisdiction by incorporating there and then had to pay taxes for it. Seems pretty straight forward.
The founder would only lose $100M if they both (A) had no personal tax liability in their own jurisdiction and (B) their jurisdiction lacks a double-taxation agreement with the US (such that tax paid in US defrays tax liability at home).
It is quite possible that it was tax neutral for them personally.
Cayman Islands has other costs and risks - depending upon your context.