There has been a great deal of publicity recently regarding the use
off offshore accounts. At the recent G20 meeting in London it was
decided to that the OECD would report back to the G20 group in November
2009 with a list of countries that are considered ‘unco-operative tax
havens’.

A great deal of this publicity refers to private or
individual ‘offshore bank accounts’. As a Company we have always
discouraged the use of private offshore accounts for the purpose of
avoiding tax. The European Savings Tax Directive came into effect on
the 1st July 2005 and applies to ‘natural persons only, resident in any
EU country, on interest received on savings instruments, deposit
accounts etc. At this time it does not affect interest paid to
companies.

IBC (International Business Companies) commonly know
as ‘Offshore Companies’. IBC Companies continue to serve a number of
very useful purposes and are perfectly legal, although it is essential
that owners of such Companies file returns for repatriated funds in the
proper way. Now the positive aspects of using IBC Companies:

1.
International trade: IBC Companies are ideal vehicles for international
business. We highly recommend the Seychelles as a great jurisdiction
for your IBC Company. An IBC Company can trade anywhere in the world
but cannot trade in its home jurisdiction. Import and export
transactions can be made more tax efficient using an IBC Company.

2. Internet Companies: Companies trading on the internet usually trade on
on
an International basis and can in circumstances encounter cross boarder
tax problems. Using an IBC Company can solve this problem

3.
Confidentiality: An IBC Company gives confidentiality and provides
asset protection. Many clients choose IBC Companies to hold assets such
as property, boats, planes and intellectual property such as trade
marks, patents, copyrights and franchise agreements

4.
Consultancy and Employment: Many consultants, real estate agents,
security consultants, musicians and entertainers receive income on an
International basis. The use of an offshore (IBC Company) can be a tax
efficient structure for such Companies and individuals.