Advantages of Offshore Banking- Solicoop42.Org / Wed, 17 Apr 2019 06:05:17 +0000 en-US hourly 1 What Is the Meaning of Offshore Banking? /finance-and-tax-havens/ /finance-and-tax-havens/#respond Wed, 17 Apr 2019 06:05:17 +0000 Offshore Banking and Tax heavens

When we talk about tax havens, we mainly mean those states that guarantee a minimum or even zero tax on bank deposits. A choice of this kind is motivated mainly by political reasons, in that a large amount of capital is attracted from foreign countries and in exchange offers extremely reduced taxation. From the tax payer’s point of view, going back to the original definition of “tax heaven”, the so-called tax haven is, for all intents and purposes, a refuge from taxation on income, which can therefore be counted among tax avoidance techniques.

Concept of a tax haven

The concept of a tax haven is closely linked to that of offshore companies, which literally means “” society outside the jurisdiction “”. Essentially an offshore company is a company that is registered under the laws of a foreign state, but carries out its activities outside the state or jurisdiction in which it was registered.

Given these two definitions, it is important to stress that one of the main objectives of setting up an offshore company is to reduce taxation. Although, through a particular configuration of the company itself, it is also possible to obtain other advantages, such as: asset protection, bureaucracy simplification, cost optimization. In reality, off-shore companies are set up mainly to carry out rather dangerous financial speculations, while maintaining a high degree of confidentiality, to cover prohibited or illicit operations, or to hide budget losses. It is precisely by virtue of these characteristics that off-shore companies become the flagship in the corporate structure of the major multinationals. Another important aspect of offshore companies is that they have no offices and no employees. The only thing they have is a tag outside the door, but often that is absent.

But how many tax havens are there in the world? There are more than a hundred and they seem to be constantly growing. According to a recent report by the Italian law enforcement agency, tax havens are used, not only for the reasons mentioned above, but also to launder money, to escape creditors or even to escape the claims of the spouse following the separation. Furthermore, according to industry professionals, it appears that the demand for foreign companies is increasing among middle-income people.

Among the best tax havens of 2016, following the Panama Papers scandal, the following countries have been included: Luxembourg, the Cayman Islands, the Isle of Man, the Isle of Jersey, Ireland, the Mauritius Islands, the Bermuda, Monaco, Switzerland and the Bahamas. Each of these states has its own specialization in “” tax matters “”.

Thinking of defeating tax havens is, to date, illusory. It would take a drastic solution – as suggested by Zucman – which envisages the creation of a mandatory global financial register. Practically “fanta-finance” ”.

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End of tax havens /end-of-tax-havens/ /end-of-tax-havens/#respond Tue, 16 Apr 2019 05:55:46 +0000 As of January 1, 2016, it will no longer be possible to have a secret account in one tax havens, like Denmark, together with many other countries – including Switzerland, Luxembourg, Liechtenstein, and Gibraltar – have signed an agreement on automatic exchange of bank data.

This means that if you have a deposit in a foreign bank or other financial institution per. January 1, 2016, the size of this deposit as well as a possibility. the Gain in the form of e.g. interest or dividend will automatically be reported to SKAT in 2017.

This, of course, is only problematic for those who either do not self-assess their growth on the foreign account or those who have not been properly taxed by the actual deposit on the foreign account.

The obligation to exchange also applies to corporate accounts. If this is an unidentified account or an account with a c / o address, they are reported separately, and this triggers an investigation with the Danish tax authorities.

The penalty for tax evasion depends partly on the evaded amount and partly on whether the evasion has been done negligently or intentionally. That you do not have the tax return on a foreign account will be intentional tax evasion. If no correct tax has been paid on the balance of the account, the tax evasion relating to this must be assessed separately.

The penalty will be either a fine or a combination of conditional/unconditional imprisonment and fine. The normal amount of tax evasion is the amount of money that has been evaded. In addition, the tax must be paid.

Although review
With the new agreements for automatic reporting of deposits on foreign accounts, it must be assumed that there is a considerably increased probability that SKAT will be aware of the persons and companies, etc. who do not have the tax return correctly. Therefore, it may be an idea to consider a self-notification and thereby legalize the deposit on the foreign account.

As a self-reviewer, you will get a “discount” on the penalty for tax evasion. The “discount” depends on the circumstances of the case – in particular, the amount of the evaded amount.

Amnesty Scheme
From July 1, 2012, to June 30, 2013, an amnesty scheme was introduced in Denmark, so that as a self-reported person, you waived for imprisonment and received a discount on the fine. However, this amnesty scheme has expired.

Since the starting point for tax evasion is often punishment, it may be worth examining whether part of the tax evasion is outdated. You operate both with a tax law and a criminal offense. The limitation period depends on the amount evaded and will be either 3, 5 or 10 years or a combination thereof.

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