Tax havens are generally used by wealthy individuals as a location where they can conduct business or deposit funds tax free. A recent contract dispute has reported and exposed that Chinese billionaire Zhang Lan, founder/chairman of South Beauty, has emigrated to St. Kitts. St. Kitts has become an instant “hot spot” for Chinese emigration brokers and high net worth individuals, in addition to Cyprus which has attract a lot Chinese real estate investors early this year.
According to a recent report by Reuters,St. Kitts began to sell its citizenship. For $250,000 donation to the Sugar Industry Diversification Foundation, a foreign national is entitled to apply for full rights as a citizen there. The transaction can take three months and applicants need never visit the nation’s sandy shores. Foreigners can also invest $400,000 in approved real estate for a citizenship. St. Kitts passport holders can travel without a visa to more than a hundred countries, including Canada and all of Europe. They pay no personal income taxes. The St. Kitts and Nevis program was established in 1984 by the Citizenship Act.
Zhang renounced her Chinese nationality and applied to relinquish her membership of the political advisory body of a Beijing district.She had her hukou (household registration) canceled on Sept. 17.
China does not recognize dual or multiple citizenship. Chinese law stipulates that if one of its citizens takes foreign citizenship, he or she loses Chinese nationality. It is unknown what nationality Zhang now has.
Zhang’s nationality change has triggered public controversy, with people doubting her eligibility for membership of the country’s political advisory body.
The Hurun China Rich List of the nation’s wealthiest individuals ranked Zhang 589th with an estimated fortune of 3.1 billion yuan (US$490 million) in 2011.
Re-printed from cfo-dailyreport.com