How to pay less tax

Unlike what several colleagues believe, offshore companies aren’t out there just to evade paying taxes. The main advantage is to conceal property with all the inherent advantages that range from evading “tax ceiling” taxes to protecting capital from the spouse our creditors, etc. Offshore literally means outside territorial waters, or in the case of a financial transaction, made outside the country of residence (extraterritorial transaction). People operate offshore to protect their own capital and reduce the tax burden. Each country considered to be a tax haven offers some advantages limited to residents or the companies domiciled there. For instance, in the Principality of Monaco, individuals do not pay income tax. Quite the contrary: companies have a high tax burden. In Panama, companies and individuals domiciled there do not pay taxes provided they do not conduct business within that country. In the United States during Prohibition when gambling was outlawed, some bold business owners opened up floating casinos outside territorial waters. These establishments raked in showers of bets amid booze. The offshore industry is small and mysterious in spite of the fact that, according to the latest polls, it handles over 60% of the world’s capital. It is mistakenly thought that tax havens are countries frequented by big financiers, corrupt politicians, the jet set and multimillionaires who devote themselves to spending large sums of money to feed their leisure activities. In reality, any professional with a turnover of 30-40 thousand euros per year can obtain large advantages using tax havens. This definition was introduced to classify those countries which, to favor their own economies, have adopted tax facilities for individuals or companies, especially if they reside abroad. This type of economy may be adopted only by nations with a central geographic position with respect to the mainland or region and with a very efficient banking and telecommunications system. The major groups and investors use schemes that cannot be attacked by the state treasury. This is because they participate in many ghost companies, subsidiaries and affiliate companies that yield black funds through corporations.