|
|
Key Aspects of International Tax Planning for an Offshore Company
|
|
Posted On :
Aug-20-2011
| seen (482) times |
Article Word Count :
426
|
|
Many people are under the misconception that the formation of an offshore company and keeping offshore bank accounts is the best way to evade taxes. This is simply not true because tax evasion is an illegal activity.
|
|
Many people are under the misconception that the formation of an offshore company and keeping offshore bank accounts is the best way to evade taxes. This is simply not true because tax evasion is an illegal activity. No offshore banking institution will support any form of illegal activity. There are, however, legal means to lower your tax rates through proper planning. International tax planning, which is completely legal, can help you to avoid paying taxes or allow you to reduce your dues. Offshore banking is a vital part of international tax planning as it allows account holders to legally sidestep paying huge amounts of taxes in their home countries.
International tax planning basically involves the formulation of an efficient strategy to facilitate tax avoidance. Tax avoidance, which may be facilitated by formation of an offshore company, is not the same as tax evasion. While tax evasion is illegal and a criminal activity punishable by law, tax avoidance refers to taking up legal means to lower or not pay taxes. The formation of an offshore company and opening an offshore bank account is just one strategy of efficient tax planning. Since it involves taking into account international laws and jurisdictions, it is termed international tax planning.
Let us try to understand how the formation of an offshore company helps in legal international tax planning:
• Offshore company formation as well as opening offshore bank accounts in a tax haven country is aimed at avoiding the payment of taxes. Tax haven countries have no tax, or even no tax reporting regulations, pertaining to an offshore company. This makes tax haven countries a convenient place to form companies in order to avoid paying huge amounts of taxes in your home country.
• Asset protection is the most important advantage offered by offshore banking. It is very difficult to file lawsuits against offshore companies as their assets cannot be identified or located easily thanks to stringent confidentiality laws at place in these offshore banking jurisdictions.
• Personal assets of owners of offshore enterprises can be tied up with that of the company name making it almost impossible to tack back. Offshore banks will not divulge information on main beneficiary or owner of an offshore business company. You can therefore rest assured in the knowledge that your financial assets remain safe and protected.
• Capital accumulated by an offshore investment company can be invested throughout the world, easily offering one the chance to double or triple their income.
|
|
|
|
Article Source :
http://www.articleseen.com/Article_Key Aspects of International Tax Planning for an Offshore Company_75185.aspx
|
|
Author Resource :
Peter Robertson is an author who writes useful articles on offshore company, offshore banking, offshore asset protection, Offshore bank account, tax havens and related topics for those who are interested in offshore company formation. For more information on offshore company, and international tax planning, you can also visit w
|
|
Keywords :
international tax planning, offshore company formation, offshore banking, offshore trusts, offshore company, offshore account,
Category :
Finance
:
Finance
|
|
|
|
|
|
