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Avoidance of Tax
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Avoidance of Tax
Tax avoidance in itself is not illegal. Tax evasion, however, is. Moving ones assets and finances to a different jurisdiction, such as a tax haven, to pay less tax is a completely legal manoeuvre, if it is conducted in the correct way. Opening an offshore bank account is a common personal and business transaction. Establishing an offshore company to administer the offshore bank account offers greater asset protection, as does establishing an Offshore Trust (probably the strongest asset protection medium available).
Tax Avoidance is beneficial to the individual or the company as it allows personal or corporate assets to flourish in offshore jurisdictions and offshore financial centres.
This can be done one of two different ways. The individual becomes a resident in the offshore tax haven location. This is done solely for taxation purposes so that the individual pays less tax on personal assets. The other way to achieve lower taxation or avoid tax completely is to establish a legal structure within the tax haven. This offshore vehicle can be an offshore company or an offshore trust, for example. The individual will then transfer any assets (property, stocks or savings, for example) into the name of the new offshore entity, which will pay any tax due.
Whichever method of tax avoidance is employed, it is imperative that the legal systems of the offshore jurisdiction are complied with completely. Paying (lesser) tax in an offshore jurisdiction allows for increased personal assets but this must be done legally and responsibly. An offshore trust consultant or offshore company consultant can advise you about the legalities of each offshore jurisdiction in addition to the associated benefits of each tax haven.
Please telephone one of our offshore tax haven consultants in order to discuss your requirements and decide which tax haven and which offshore structure is right for you.