Exile

From New World Encyclopedia



Exile can be a form of punishment. It means to be away from one's home (i.e. city, state or country) while either being explicitly refused permission to return and/or being threatened by prison or death upon return.

It is common to distinguish between internal exile, i.e., forced resettlement within the country of residence, and external exile, deportation outside the country of residence.

Exile can also be a self-imposed departure from one's homeland. Self-exile is often practiced as form of protest or to avoid persecution.

History

Exile has a long tradition as a form of punishment. It has been known in ancient Rome, where the Roman Senate had the power to exile individuals, entire families or countries (which amounted to a declaration of war).

The towns of ancient Greece, as well used exile both as a legal punishment and in Athens as a social punishment. In Athens during the time of democracy, the process of ostracism was devised in which one man who had basically made a nuisance of himself was banished from the city without prejudice for ten years, after which he was allowed to return. Among the more famous recipients of this punishment were Themistocles, Cimon and Aristides the Just. Further, Solon the lawgiver voluntarily exiled himself from Athens after drafting the city's constitution, to prevent being pressed to change it.

In the Polish-Lithuanian Commonwealth a court of law could sentence a noble to exile (banicja). As long as the exile (banita) remained in the Commonwealth he had a price on his head and lost the priviliges and protection granted to him as a noble. Even killing a banita was not considered a crime although there was no reward for his death. Special forms of exile were accompanied by wyświecenie (a declaration of the sentence in churches) or by issuance of a separate declaration to townfolk and peasantry (all of them increased the knowledge of the exile and thus made his capture more likely).

A more severe penalty than exile was infamy (infamia) - 'a loss of honor and respect' (utrata czci i wiary). A noble who has been infamed not only suffered from the same penalties as an exiled one, but in addition, an exiled noble (banita) who killed an infamed one (infamis) could expect his exile sentence to be revoked. In addition anybody killing an infamed noble could expect a monetary reward from the state (usually a starosta of given region), and sheltering or supporting an infamed noble were also punishable offences. Both exile and infamy could be revoked if the person had done a great service to the state. As the law system in the Commonwealth was fairly inefficient, many exiles actually stayed within the country, often employed and protected by some magnates. One of the most famous exiles of the Commonwealth was Samuel Łaszcz.

On October 23, 2006, for the first time in United States history, a judge in the United States imposed exile from the US on a US citizen for crimes committed in the US. The case concerned Malcolm Watson, a citizen of the United States and a permanent resident of Canada who resided in St. Catharines, Ontario, Canada, near Buffalo, New York on the other side of the border. Watson, a teacher at Buffalo Seminary and a cross-border commuter, pleaded guilty to misdemeanor sex crimes against a 15-year-old former student in Cheektowaga Town Court. The district attorney, Frank J. Clark wanted to impose probation but Watson wanted to serve his probation in Canada where he, his wife, and their children lived. The DA agreed, but subject to the condition that since his probation officer could not directly monitor his residence in Canada, Watson had to remain out of the US except for meetings with his probation officer—thereby, once the judge approved the sentence, effectively exiling Watson for three years. The sentence may not stand, however. Canada arrested Watson upon his re-entry to Canada and Watson faces a hearing on possible revocation of his permanent residence status in Canada. Furthermore the DA has pledged to appeal the sentence, despite previously approving it, citing the huge and unforeseen public outcry that the case has received in Canada. After a hearing in Canada, Malcolm Watson was deemed to be not a threat and released.[1]

Personal exile

Exile was used particularly for political opponents of those in power. The use of exile for political purposes can sometimes be useful for the government because it prevents the exilee from organizing in their native land or from becoming a martyr.

Exile represented a severe punishment, particularly for those, like Ovid or Du Fu, exiled to strange or backward regions, cut off from all of the possibilities of life as well as their families and associates. Dante describes the pain of exile in The Divine Comedy:

«. . . Tu lascerai ogne cosa diletta
più caramente; e questo è quello strale
che l'arco de lo essilio pria saetta.
Tu proverai sì come sa di sale
lo pane altrui, e come è duro calle
lo scendere e 'l salir per l'altrui scale . . .»
". . . You will leave everything you love most:
this is the arrow that the bow of exile
shoots first. You will know how salty
another's bread tastes and how hard it
is to ascend and descend
another's stairs . . ."
Paradiso XVII: 55-60[2]

Exile has been softened, to some extent, in the nineteenth and twentieth centuries, as exiles have received welcome in other countries and have either created new communities within those countries or, less frequently, returned to their homelands following the demise of the regime that exiled them.

Deportation serves as a modern exile. It is either the expulsion of persons of foreign citizenship from a country (usually back to that person's country of origin) or forcible relocation within a nation. Deportation is either the result of a criminal activity or based on the needs and policies of a government.

The British government often deported people to penal colonies, such as Australia or Georgia. These colonies are usually underdeveloped pieces of land owned by that government in which conditions are harsh enough to serve as punishment.[3][4]

Famous people who have been in exile

Government in exile

During a foreign occupation or after a coup d'etat, a government in exile of a such afflicted country may be established abroad.

A government in exile is a political group that claims to be a country's legitimate government, but for various reasons is unable to exercise its legal power, and instead resides in a foreign country. Governments in exile usually operate under the assumption that they will one day return to their native country and regain power.

Governments in exile frequently occur during wartime occupation. For example, during the German expansion of the Second World War, numerous European governments and monarchs were forced to seek refuge in the United Kingdom, rather than face certain destruction at the hands of the Nazis.

Actions of governments in exile

International law recognizes that governments in exile may undertake many types of actions in the conduct of their daily affairs. These actions include:

  • becoming a party to a bilateral or international treaty
  • amending or revising its own constitution
  • maintaining military forces
  • retaining (or "newly obtaining") diplomatic recognition by sovereign states
  • issuing identity cards
  • allowing the formation of new political parties
  • instituting democratic reforms
  • holding elections
  • allowing for direct (or more broadly-based) elections of its government officers, etc.

However, none of these actions can serve to legitimatize a government in exile to become the internationally recognized legal government of its current locality. By definition, a government in exile is spoken of in terms of its native country, hence it must return to its native country and regain power there in order to obtain legitimacy as the legal government of that geographic area.

Past governments in exile

  • Provisional Government of the Republic of Korea
  • Crown Council of Ethiopia, led by H.I.M Prince Ermias Sahle Selassie and based in the Washington D.C. area, claimed that the Emperor was still the legal head of Ethiopia.
  • The government in exile of the Free City of Danzig.
  • Spanish Republican government in exile after Franco's coup d'état. Based in Mexico City from 1939 to 1946 when it was moved to Paris where it lasted until Franco's death.
  • The Provisional Government of Free India was established by Indian nationalists in exile during the war.
  • Other exiled leaders in England included King Zog of Albania and Emperor Haile Selassie of Ethiopia.

Many countries established a government in exile after loss of sovereignty in connection with World War II:

  • Belgium (invaded May 10, 1940)
  • Czechoslovakia (established in 1940 by Beneš and recognised by the British government)
  • Free France (after 1940)
  • Greece (invaded October 28, 1940)
  • Luxembourg (invaded May 10, 1940)
  • Netherlands (invaded May 10, 1940)
  • Norway (invaded April 9, 1940)
  • Poland (from September 1939)
  • Yugoslavia (invaded April 6, 1941)
  • Commonwealth of the Philippines (invaded December 8, 1941)
  • Denmark's occupation (April 9, 1940) was administered by the German Foreign Office, contrary to other occupied lands that were under military administration. Denmark did not establish a government in exile, although there was an Association of Free Danes established in London. The King and his government remained in Denmark, and functioned comparatively independently for the first three years of German occupation. Meanwhile, Iceland and the Faroe Islands were occupied by the Allies, and effectively separated from the Danish crown.

Nation in exile

Main articles: Diaspora and Refugee

When large groups, or occasionally a whole people or nation is exiled, it can be said that this nation is in "exile," or "Diaspora." Nations that have been in exile for substantial periods include the Jews, who were deported by Nebuchadnezzar II of Babylon in 597 B.C.E. and again in the years following the destruction of the second Temple in Jerusalem in the year 70 C.E.

After the partitions of Poland in the late eighteenth century, and following the uprisings (Kosciuszko Uprising, November Uprising, and January Uprising) against the partitioning powers (Russian Empire, Prussia and Austro-Hungary), many Poles chose, or were forced, into exile, forming large diasporas (known as "Polonia"), especially in France and the United States.

The entire population of Crimean Tatars (200,000) that remained in their homeland Crimea was exiled on May 18, 1944 to Central Asia as a form of "ethnic cleansing" and collective punishment on false accusations.

At Diego Garcia, between 1967 and 1973 the British Government forcibly removed some 2,000 Ilois resident islanders to make way for a military base jointly operated by the U.S. and U.K.[5]

Tax exile

A wealthy citizen who departs from a former abode for a lower tax jurisdiction in order to reduce his/her tax burden is termed a "tax exile."

A tax exile is one who chooses to leave their native country and instead to domicile themselves in a foreign nation or jurisdiction, where taxes on their personal income are appreciably lower or even nil. Going into tax exile is a means of tax mitigation or avoidance.

Under U.K. law, a person is "tax resident" if they visit the country for 183 days or more in the tax year or for 91 days or more on average in any four consecutive tax years.[6]

A tax haven is a place where certain taxes are levied at a low rate or not at all. This encourages wealthy individuals and/or firms to establish themselves in areas that would otherwise be overlooked. Different jurisdictions tend to be havens for different types of taxes, and for different categories of people and/or companies.


Most countries

Most countries impose taxes on income earned or gains realised within that country regardless of the country of residence of the person or firm. Most countries also tax their residents (individuals and companies) on all their worldwide income.

One way a person or company takes advantage of tax havens is by moving to, and becoming resident for tax purposes in, an appropriate country. Another way for an individual or a company to take advantage of a tax haven is to establish a separate legal entity (an offshore company, offshore trust or foundation), subsidiary or holding company there. Assets are transferred to the new company or trust so that gains may be realised, or income earned, within this legal entity rather than earned by the beneficial owner.

United States

The United States is unlike most other countries in that its citizens are subject to U.S. tax on their worldwide income no matter where in the world they reside. U.S. citizens therefore cannot avoid U.S. taxes either by emigrating or by transferring assets abroad. According to Forbes magazine some nationals choose to give up their United States citizenship rather than be subject to the U.S. tax system. [1]

However, U.S. citizens who reside (or spend long periods of time) outside the U.S. may be able to exclude up to US$80,000 of salaried income earned overseas (but not other types of income), as well as foreign housing expenses. Additionally, the U.S. will normally allow a U.S. citizen to subtract any foreign income taxes paid on foreign sourced income, from the U.S. income tax due on that income.

U.S. citizens do have the option of setting up an offshore foundation or trust, which can be used as a tax reporting free entity. However, constraints exist on how the income is used. For example, foundations stipulate that funds must be used for altruistic purposes.

Incentives for the tax haven

There are several reasons for a nation to become a tax haven. Some nations may find they do not need to charge as much as some industrialised countries in order for them to be earning sufficient income for their annual budgets. Some may offer a lower tax rate to larger corporations, in exchange for the companies locating a division of their parent company in the host country and employing some of the local population. Other domiciles find this is a way to encourage conglomerates from industrialised nations to transfer needed skills to the local population. Still yet, some countries simply find it costly to compete in many other sectors with industrialised nations and have found a low tax rate mixed with a little self-promotion can go a long way to lure companies to their domiciles.

Many industrialised countries claim that tax havens act unfairly by reducing tax revenue which would otherwise be theirs. It is claimed that money launderers also use tax havens extensively, although regulations in tax havens can actually make money laundering more difficult than in locations with a large black market such as New York City or London. In 2000 the Financial Action Task Force published what came to be known as the "FATF Blacklist" of countries which were perceived to be uncooperative in relation to money laundering; although several tax havens have appeared on the list from time to time (including key jurisdictions such as the Cayman Islands, Bahamas and Liechtenstein), no offshore jurisdictions appear on the list at this time.

Examples of tax havens

  • Andorra. No personal income tax.
  • Anguilla
  • Antigua and Barbuda
  • Aruba
  • The Bahamas levies neither personal income nor capital gains tax, nor are there inheritance taxes.
  • Barbados - A 'Low-tax regime' not 'haven'. [2], [3]
  • Belize
  • Bermuda does not levy income tax on foreign earnings, and allows foreign companies to incorporate there under an "exempt" status. Exempt companies may not hold real estate in Bermuda or trade there, nor may they be involved in banking, insurance, assurance, reinsurance, fund management or similar business, such as investment advice, without a license. The island also maintains a stable, clean reputation in the business world. At present, there are no benefits for individuals. In fact, for a non-Bermudian to own a house on the island, they would have to pay a minimum of $15,000 a year in land tax alone.
  • British Virgin Islands: the 2000 KPMG report to the United Kingdom government indicated that the British Virgin Islands was the domicile for approximately 41% of the world's offshore companies, making it by some distance the largest offshore jurisdiction in the world by volume of incorporations. The British Virgin Islands has, so far, avoided the scandals which have tainted less well regulated offshore jurisdictions.
  • Campione d'Italia an Italian enclave within Switzerland
  • Cayman Islands
  • In the Channel Islands, no tax is paid by corporations or individuals on foreign income and gains. Non-residents are not taxed on local income. Local taxation is at a fixed rate of 20.0% in Jersey, Guernsey, & Alderney and 0% in Sark.
  • Cook Islands
  • Cyprus: this jurisdiction has grown recently in popularity and anticipates further future growth. As a jurisdiction Cyprus is in a position to exploit its unusual position as an offshore jurisdiction which is within the EU.
  • Dubai
  • Gibraltar
  • Hong Kong's tax rates are so low that it can be considered a tax haven.
  • Ireland did not tax the foreign income of authors and artists until 2006. Corporation tax is only 10% or 12%.
  • The Isle of Man does not have corporation tax. Income tax from local sources is 10% and 18% from non-local sources.
  • Latvia
  • Lithuania
  • Liechtenstein
  • Luxembourg
  • Macau
  • Malta
  • Mauritius-based front companies of foreign investors are used to avoid paying taxes in India utilising loopholes in the bilateral agreement on double taxation between the two countries, with the tacit support of the Indian government, who are keen to improve figures relating to inward investment. The use of Mauritius as a gateway to funnel foreign investments into India has always been controversial. Mauritius's financial regime has a number of the key characteristics of a tax haven, which has helped to facilitate this.[4]
  • Monaco does not levy a personal income tax.
  • Nauru
  • Netherlands Antilles
  • Nevis
  • New Zealand does not tax foreign income derived by NZ trusts settled by foreigners of which foreign residents are the beneficiaries.
  • Panama
  • Samoa
  • San Marino
  • Sark
  • Sealand
  • Seychelles
  • St Kitts and Nevis
  • St Vincent and the Grenadines
  • Switzerland is a tax haven for foreigners who become resident after negotiating the amount of their income subject to taxation with the canton in which they intend to live. Typically taxable income is assumed to be five times the accommodation rental paid. Vaud is the most popular canton for this scheme.
  • Turks and Caicos Islands
  • The UK is a tax haven for people of foreign domicile, even if they are UK resident (residence and domicile being separate legal concepts in the UK), in that they pay no tax on foreign income so long as it is not remitted to the UK. Similar arrangements are to be found in a few other countries including Ireland.
  • Some states within the United States, particularly Delaware, offer incentives for businesses to locate there. Many banks and other financial companies are domiciled in the state of Delaware even though Delaware is one of the smallest states in the USA.
  • Uruguay no personal income tax.
  • United States Virgin Islands offers a 90% exemption from U.S. income taxes and 100% exemption from all other taxes and customs duties to certain qualified taxpayers.

Some tax havens including some of the ones listed above do charge income tax as well as other taxes such as capital gains, inheritance tax, and so forth. Criteria distinguishing a taxpayer from a non-taxpayer can include citizenship and residency and source of income.

Amounts

While incomplete, and with the limitations discussed below, the available statistics nonetheless indicate that offshore banking is a very sizeable activity. IMF calculations based on BIS data suggest that for selected OFCs (Offshore Financial Centers), on balance sheet OFC cross-border assets reached a level of US$4.6 trillion at end-June 1999 (about 50 percent of total cross-border assets), of which US$0.9 trillion in the Caribbean, US$1 trillion in Asia, and most of the remaining US$2.7 trillion accounted for by the IFCs (International Financial Centers), namely London, the U.S. IBFs, and the JOM (Japanese Offshore Market). ([5])


References
ISBN links support NWE through referral fees

  1. U.S. sex offender serving probation in Canada was not `exiled,' says N.Y. judge Retrieved December 6, 2006
  2. Dante Alighieri Retrieved December 6, 2006
  3. History of Colonial Georgia Retrieved December 12, 2006
  4. Convicts and the British colonies in Australia Retrieved December 12. 2006
  5. Diego Garcia: remembering paradise lost Retrieved December 12, 2006
  6. Taxable UK Residents Retrieved December 6, 2006

External links


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