International Business Laws News
international business laws news
Is Offshore Business The Right Business For You?
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 –especially in IT and global financial services- and traders -especially global commodity traders-.
The following types of business can also make use of an offshore company: import/export companies, international trading companies, asset holding companies, property investment/intellectual property holdings.
Companies that are located in unstable jurisdictions or economies can benefit from an offshore business in a secure jurisdiction or economy. Similarly, expatriates who would like to protect their assets from home country taxes and inheritance laws can do so through offshore business.
If that is you…
What advantages does offshore business provide?
Offshore business is a way to potentially achieve the following: (i) minimize international taxation legally (e.g. Singapore has legally low tax rates), (ii) provide a reputable image for business (e.g. if the original country of business is untrustworthy or unpopular in a specific industry), (iii) protect global assets (e.g. if in original country asset protection laws are inadequate or badly implemented), (iv) facility company incorporation procedures (e.g. offshore business set up procedures are often simpler, faster and cheaper for entrepreneurs than their home jurisdiction),(v) provide confidentiality (e.g. some offshore jurisdictions do not publish shareholder/owner information to the public), (vi) fee exemption (e.g. business license fees, stamp duties and various taxes), (vii) no exchange controls (often the case in offshore jurisdictions), (viii) no accounting/audit requirements (some jurisdictions do not require financial statements or annual audits).
What are the risks to be aware of?
If you decide these advantages are relevant to you and you choose to incorporate a business offshore, be aware of the following: (i) OECD pressure on certain offshore jurisdictions – many popular jurisdiction are bigger targets of OECD pressures for TIEA (ii) certain offshore jurisdictions have a negative reputation that affects business image (iii) concealing information about offshore investments is illegal in most countries.
What exactly can an offshore business do?
Offshore businesses can do a variety of things dependent on the offshore jurisdiction it is incorporated under. A few examples to note are:
(i) Have limited liability status, thereby limiting director and shareholder liability to the amount of money invested i.e. share capitalization, and separating the company as a legal entity from its owners.
(ii) Conduct business in any country, just like a local company. Note: like a local company it is also subject to each of the rules and regulation of the jurisdiction in which business is conducted.
(iii) Buy, sell, hold securities, certificates of deposit, open savings and other bank accounts, transact in multiple currencies, stocks, bonds, mutual funds, other banking instruments, real estate and valuables.
(iv) Open a bank account in an international or local bank and borrow or lend money.
(v) Hold international meetings of directors and shareholders via telephone, fax or any other electronic or virtual means of communication.
(vi) Trade its own shares, hold treasury shares, and conduct mergers, acquisitions and/or joint ventures.
(vii) Transfer assets to a trust or foundation.
(viii) Trade licenses and royalty rights without paying taxes on royalty income.
Many businesses miss out on legally available tax efficiencies that can be achieved through incorporating an offshore business. It is important for any entrepreneur or director to properly research the practices that exist and that are legally viable, in order to conduct business in the smartest way possible. If offshore business sounds like a relevant practice for your business, consider your options and seek advice and approval from a well-informed reliable source, in order to take full advantage of what the globalized business world provides, and avoid becoming another news headline for tax evasion.
Healy Consultants is a leading corporate services firm that assists entrepreneurs and investors with their company incorporation requirements. The firm provides a range of services including Offshore Company Formation, tax planning and offshore investing. More information on company incorporation can be found by visiting http://www.healyconsultants.com
About the Author
Melissa Glotzer is a Marketing Assistant at Healy Consultants. She is a graduate of the University of Manchester Business School with a BSc (Honours) in Management with Accounting and Finance.
Do you agree with Justice Scalia telling Europe to mind it’s own business re: so-called torture?
“Europeans get really quite self-righteous, you know, (saying) ‘no civilized society uses it.’ They used it themselves — 30 years ago,” he said, adding that a majority of Europeans probably supported capital punishment anyway.
Scalia said that neither he nor any of the eight other Supreme Court justices who collectively make up the United States’ highest court should be seen as setting the moral tone for the international community.
“I don’t look to their law, why do they look to mine?” he said.
http://news.yahoo.com/s/ap/20080212/ap_on_re_au_an/britain_scalia_torture_1
Good for him I used to live with these smug self righteous SOB’s I use to tell them to put a cork in it I didn’t want to hear their opinion they just echo the liberals in my own country Same is true with the cannucks
|
|
Dark Alliance: The CIA, the Contras, and the Crack Cocaine Explosion $15.30 In July 1995, San Jose Mercury-News reporter Gary Webb found the Big One–the blockbuster story every journalist secretly dreams about–without even looking for it. A simple phone call concerning an unexceptional pending drug trial turned into a massive conspiracy involving the Nicaraguan Contra rebels, L.A. and Bay Area crack cocaine dealers, and the Central Intelligence Agency. For several… |
|
|
Outside the Box: Corporate Media, Globalization, and the UPS Strike (History of Communication) $10.70 Drawing on a textual analysis of over five hundred news reports, Deepa Kumar presents a rare, in-depth study of media representation of the 1997 United Parcel Service (UPS) workers’ strike. She delineates the history of the strike, how it coincided with the rise of globalization, and how the mainstream media were pressured to incorporate pro-labor arguments that challenged the dominant logic of ne… |
|
|
The Murder Business: How the Media Turns Crime Into Entertainment and Subverts Justice $5.00 Crime stories fascinate the public. But between factual news stories, overblown Âhuman interest reports and salacious murder mystery exposés, itÂs difficult to tell where news ends and entertainment begins. Mark Fuhrman, best-selling author of Murder in Brentwood, explores this fine line and how it is increasingly being crossed, revealing new and shocking details on such highprofile c… |
|
|
Making Laws and Making News $48.82 This book is in New – Excellent condition |
|
|
The News Business $7.73 This book is in Good Used condition |
|
|
Business Law News, by Samuelson $1.5 This book is in Good Used condition |
|
|
Business Law News $14.58 No Synopsis Available |
|
|
International News in the 21st Century $26.55 This book is in New – Excellent condition |
|
|
International News and Foreign Correspondents $19.45 No Synopsis Available |
|
|
The Unwritten Laws of Business $37.55 This book is in Used condition |
|
|
Business Laws of Egypt/1985 $432.9 No Synopsis Available |
|
|
Commercial Business and Trade Laws $121.88 No Synopsis Available |
|
|
Business Laws of Oman, $429 No Synopsis Available |
|
|
Bermuda Offshore Business Laws $131.63 No Synopsis Available |
|
|
Antigua Offshore Business Laws $92.63 No Synopsis Available |
|
|
Business Laws of Iran $74.59 No Synopsis Available |
|
|
Business Laws of Kuwait, 1985 $429 No Synopsis Available |
|
|
Cayman Islands Business Laws $82.88 No Synopsis Available |
|
|
Business Laws of Saudi Arabia, $429 No Synopsis Available |
|
|
Business Laws of Iraq/1985 $429 No Synopsis Available |
|
|
The International Electric Exhibition at the Crystal Palace, from The Illustrated London News $49.99 The International Electric Exhibition at the Crystal Palace, from “The Illustrated London News” – Giclee Print |
|
|
International Encyclopedia of Laws $980 This book is in New – Excellent condition |
|
|
International Encyclopedia of Laws: Contracts $1520.03 No Synopsis Available |
|
|
International Trust and Laws Analysis $1632.15 No Synopsis Available |
|
|
International Trust Laws $364.75 No Synopsis Available |
|
|
National Laws and International Commerce $10.68 No Synopsis Available |
