29 Jan 2014

Chinese companies make use of Samoa tax haven

2:12 pm on 29 January 2014

Chinese companies registered under Samoa's tax haven status are among those pouring billions back into China.

Roughly 1 billion US dollars in foreign direct investment from Samoa to China is shown on a graph published last week.

According to the Samoa Observer, this represents about two billion tala of funds sent through companies registered as offshore companies in Samoa.

An analyst for the South China Morning Post, Tom Holland, says overall, the sums involved are huge.

He says out of 118 billion US dollars in foreign direct investment in China last year, he estimates that some 50 billion US came from mainland China companies, hiding money overseas then bringing it back disguised as investment.

The Samoa Observer says the publication of investment figures by the South China Morning Post came a day after the release of 37,000 new records showing that Samoa is the second biggest tax haven destination for three of Asia's largest economies.