Archive for the ‘Offshore Taxes’ Category
Offshore Taxes
About Offshore taxes
The main reason that people invest offshore rather than onshore is to avoid paying taxes.
Over the last years the evolution of telecommunication and technology has made it easier to gain access to offshore facilities. As a result, today’s offshore industry has developed into a major global industry across the entire world. Due to the proliferation of technology and offshore tax heavens, almost half the world’s financial transactions have some form of participation with these offshore centers.
The most common use of a properly structured non controlled Foreign Corporation, one that is owned by a Foundation or Trust is tax deferred investing. The difference between losing one third or more in taxes annually and tax free compounding over 20 or 30 years is so compelling, that no one would choose the former option.
One of the most fundamental concepts to keep in mind about benefiting from offshore tax havens is that the control and management of the tax generating entity be it a company, a Trust or a Foundation must be in the low or free tax jurisdiction.
Many powerful companies are using offshore jurisdictions to maximize the profits of their shareholders whilst ensuring their prices are rock bottom for consumers.
Offshore tax paradise
Offshore tax havens have a long and difficult history, dating back to the French revolution, when the wealthy people used them to shelter their assets from civil unrest and also to take advantage of the effects of compound interest in a free tax environment. As a consequence of a mixture of people’s ignorance, limited accessibility to offshore tax havens and offshore professionals, the charm surrounding the offshore world grew to mythical proportions.
It is kind of hard to rank jurisdictions as no haven can be all things for all people. However, the experts believe that these 10 countries can provide the best asset protection and stability: Switzerland, Panama, Belize, Jersey, Gibraltar, Lichtenstein, St. Kitts & Nevis, The BVI, Costa Rica and Antigua.
