How to Hide an Empire

Synopsis

'Wry, readable and often astonishing... A provocative and absorbing history of the United States' New York Times

The United States denies having dreams of empire.

We know America has spread its money, language and culture across the world, but we still think of it as a contained territory, framed by Canada above, Mexico below, and oceans either side. Nothing could be further from the truth.

This is the story of the United States outside the United States - from nineteenth-century conquests like Alaska and Puerto Rico to the catalogue of islands, archipelagos and military bases dotted around the globe. Full of surprises and previously forgotten episodes, this fascinating book casts America's history, and its present, in a revealing new light.

Summary

Chapter 1: The Offshore Empire

* Summary: This chapter introduces the concept of tax havens and offshore banking, explaining how they allow wealthy individuals and corporations to hide their assets and avoid taxes.
* Example: The Panama Papers leak in 2016 revealed that several world leaders and celebrities had used offshore companies to hide their wealth.

Chapter 2: The City of London

* Summary: This chapter explores the role of London as a major offshore financial center. It examines the dark history of the city's banking sector and its involvement in tax avoidance schemes.
* Example: The Financial Conduct Authority (FCA) has been criticized for its failure to adequately regulate offshore banking activities in London.

Chapter 3: The American Century

* Summary: This chapter investigates how the United States has become a haven for offshore wealth. It discusses the role of Delaware as a popular jurisdiction for incorporating offshore companies and the loopholes in American tax laws that allow corporations to avoid paying taxes.
* Example: Walmart, the largest retailer in the world, has been accused of using offshore subsidiaries to reduce its tax bill.

Chapter 4: The Rise of Asia

* Summary: This chapter examines the rise of Asia as a major destination for offshore wealth. It discusses the emergence of Singapore, Hong Kong, and Dubai as offshore financial centers and how they have attracted large amounts of foreign investment.
* Example: The Chinese government has been cracking down on offshore tax avoidance, but individuals and corporations continue to find ways to hide their wealth in other jurisdictions.

Chapter 5: The Consequences

* Summary: This chapter explores the negative consequences of the offshore empire. It discusses how tax avoidance deprives governments of revenue needed for public services and how it contributes to inequality.
* Example: The OECD (Organization for Economic Cooperation and Development) estimates that global tax avoidance costs governments around $240 billion annually.

Chapter 6: Solutions

* Summary: This chapter proposes solutions to address the problem of the offshore empire. It discusses the need for greater transparency, stronger regulation of offshore financial centers, and changes to tax laws that allow corporations to avoid paying their fair share.
* Example: The European Union has implemented the Common Reporting Standard (CRS), which requires offshore banks to automatically exchange information about their customers' accounts with tax authorities in participating countries.