Why do people travel to the Cook Islands, a dot in the middle of nowhere? Since approximately 1989, the Cook Islands have become a location specializing in so-called asset protection trusts, by which investors shelter assets from the reach of creditors and legal authorities.[24][25] According to The New York Times, the Cooks have laws devised to protect foreigners assets from legal claims in their home countries which were apparently crafted specifically to thwart the long arm of American justice; creditors must travel to the Cook Islands and argue their cases under Cooks law, often at prohibitive expense.[24] Unlike other foreign jurisdictions such as the British Virgin Islands, the Cayman Islands and Switzerland, the Cooks generally disregard foreign court orders and do not require that bank accounts, real estate, or other assets protected from scrutiny (it is illegal to disclose names or any information about Cooks trusts) be physically located within the archipelago.[24] Taxes on trusts and trust employees account for some 8% of the Cook Islands economy, behind tourism but ahead of fishing.[24]
Posted on: Sat, 15 Nov 2014 22:29:39 +0000
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