No crimes please, we're IOFC's
Article Abstract:
International offshore financial centres (IOFCs) are distinguished by three basic characteristics. They offer zero or minimal tax regimes, are subject to nominal supervision, and specialize in providing financial services to non-resident clients. More traditionally referred to as tax havens, the number of IOFCs has risen dramatically in the last decade. The best-known of these are in the Caribbean, notably Bermuda, Bahamas, Cayman and the British Virgin Islands. European tax havens such as Jersey, Guernsey and the Isle of Man are also well established. Newcomers to the trade include places such as Mauritius, Malta, Labuan, Tonga and Nauru. All IOFCs offer tax-efficient financial services that match those offered in mainland financial centers and their guarantee of complete confidentiality on all transactions make them appealing to both private investors and corporations alike, even as they attract suspicion from police and tax authorities elsewhere.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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A haven for the corporate client
Article Abstract:
UK multinational companies continue to make extensive use of international offshore financial centres (IOFCs) despite the many anti-avoidance laws that have been passed in the UK to curb their use. The difference now is that most corporate offshore transactions are no longer coursed through island tax havens. They are instead passed through haven equivalents that offer the advantages of special tax regimes. The three most popular sites used now are the Netherlands, Luxembourg and Switzerland, all of which allow offshore holding companies to be sited to enable taxes on dividends from subsidiaries to be minimized. These haven equivalents are also used for other purposes such as siting of finance companies and tax-efficient royalty structures. Traditional island tax havens, however, still remain part of corporate tax planning but their use is limited to such services as asset protection, capital avoidance and siting of captive insurance companies.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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Making your money work abroad
Article Abstract:
Offshore investment products offered by institutions based in tax havens provide tax planning advantages to UK residents in certain situations. One such situation occurs when an investor is in a position to anticipate low income in a given year. In that case, investment in offshore products becomes particularly attractive since capital gains derived from these offshore products are treated as income when realized and are taxed accordingly. Another situation that makes offshore investment attractive occurs when low taxpayers are not able to receive interest gross in the UK. In such a case, cash flow advantages can be derived by obtaining interest from offshore products since this interest is accepted gross. Offshore investment products that are available to UK residents include deposit accounts, currency funds, money market funds, equity funds and bond funds.
Publication Name: Accountancy
Subject: Business
ISSN: 0001-4664
Year: 1992
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