If you know what you're doing, evading tax using offshore tax havens is fairly simple:
- John owns a carpet making company, Dallas Carpets
- He incorporates a shell company in the Cayman Islands, BS Ltd.
- BS Ltd. opens a bank account in Switzerland
- Dallas Carpets purchases 'services' (such as 'consultancy' or 'administrative services') from BS Ltd. & transfers the payment to Switzerland
- BS Ltd. invests the funds in assets (bonds, equities, mutual funds, etc.)
- Dallas Carpet’s costs increase, corporation tax decreases & BS Ltd. has tax-free financial capital income in the Swiss account.
Except for more coordinated reporting standards between the likes of the Cayman Islands & BVI and the US & UK, how on Earth can we tackle this?
Quod dolorum quia asperiores nulla non animi. Vitae voluptatem ducimus ex aut libero dicta. Dolor rerum consequuntur voluptas. Nemo et voluptatum qui.
Quasi officiis aut qui odit consequuntur hic est. Doloribus dolores repudiandae assumenda officiis quia. Illum incidunt aperiam omnis odio voluptas.
Minus earum consequatur optio et quis. Dignissimos velit mollitia iure non. Nesciunt voluptas commodi ratione magnam officia ea. Est eum magnam ut eum est consequatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...