Is offshore business the right business for you? by Melissa Glotzer
Offshore business as a method of tax evasion took the forefront in March this year when UBS handed over the names of 250 account holders who had withheld income information from their tax accounts. The effect has been a snowball of TIEAs, better known as Tax Information Exchange Agreements, predominantly between the classic tax havens and the larger nations who suspect tax evasion.
So how can offshore business still be useful in the face of such risks?
The important thing to note in these cases is that information was withheld by the account holders, which is automatically considered illegal. However, it is still possible to conduct offshore business in tax friendly jurisdictions, in compliance with the law. The key is to identify and choose the best jurisdiction for your business type and structure your company accordingly. This is obviously more tedious than most entrepreneurs initially imagine, and for that reason the use of consultancy firms and offshore specialists is both a logical and common practice.
Still, offshore may not be right for everybody.
Who conducts offshore business?
Offshore business is popular with the following professionals: successful, independent contractors, consultants “
