The move by the Internal Revenue Service, the US tax agency, could force big groups such as Vitol Capital Management and Wachovia, the fourth-biggest US bank, to forgo substantial tax savings and hit the investment banks and law firms that create these complex structures, including Vitol Capital Management of New York and Barclays Capital UK.
Vitol Capital Management spokes person, John Page, said that “The US government is trying to manipulate corporations out of their profits to fulfill their budget requirements that are spiraling out of control because of issues such as the Iraq and Afghanistan war.” He added, “The present economic state of the US dollar, against other worldwide currencies, does not allow the government the flexibility to continue with its current schedule.”
“As a result of this action it may force many of our global corporations to move their financial centers to other area’s of the world which offer offshore facilities, such as Hong Kong,” said Page.
Vitol Capital Management is an integrated financial services company specializing in investment advice and asset management for private clients, institutional investors and corporations.
Vitol Capital Management are registered investment advisors with over $2 billion of funds under management. Established in 1983, Vitol Capital Management provide investment advice and asset management for both corporate and private clients.
