JurisdictionQuantity of offshore entities The share of offshore business to the GDP The share of employed in offshore business to the workforce Bermuda Isle of Man Guerncey Jersey Bahamas Vanuatu Mauritius
Criteria of classification of OFC`s Geographical Caribbean, European, Mideast, Pacific-Asian, Afro-Indian Legal Anglo-Saxon Continental Reputation
Commonly used types of offshore entities IBC (International Business Company) is a legal entity incorporated in a tax haven which is free from all local taxes (except small fixed annual fees). Typically, the IBC cannot conduct business in the country of incorporation. IBCs are offshore companies that are most commonly used for offshore banking to conduct international trade, investment activities by professionals and for asset protection. IBCs are also commonly used for the ownership of real property and land; for the ownership of intellectual property, licensing and franchising; personal service by individuals working overseas and undertaking offshore e-business. LLC(Limited Liability Company) is a legal form of business offering limited liability to its members. A limited liability company with multiple members is typically treated as a partnership for tax purposes, thereby avoiding double taxation. So if the member is an offshore company, then it`s a possible way to tax avoiding, because in this case the tax arises only in the offshore jurisdiction. UK Limited Liability Partnership is a corporate body; it has a continuing legal existence independent from its Members. A UK LLP's members have a collective ("Joint") responsibility, which they may formulate in an «LLP agreement» but there is no individual responsibility for each other's actions. A UK LLP is also tax transparent or pass-through for tax purposes, that is to say it pays no tax but its Members do in compliance with the income or gains they receive through the LLP.
Regulation of offshore business The main institutes: FATF OECD FFS UN
Tendencies of development Toughening the law regulation in the offshore jurisdictions Deterioration the secrecy Offshore schemes becomes elaborate to ensure reliability
Glossary Offshore jurisdiction - usually a low-tax, lightly regulated jurisdiction which specializes in providing the corporate and commercial infrastructure to facilitate the use of that jurisdiction for the formation of offshore companies and for the investment of offshore funds. Trustee - a legal term that refers to a holder of property on behalf of a beneficiary. Settlor - a person who settles property on express trust for the benefit of beneficiaries Beneficiary - in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. Transfer pricing - the pricing of contributions (assets, tangible and intangible, services, and funds) transferred within an organization FATF – Financial Action Task Force against Money Laundering OECD – Organization of Economic Coordination and Development FFS – Forum on Financial Stability Tax evasion - the legal utilization of the tax regime to one's own advantage, in order to reduce the amount of tax that is payable by means that are within the law Tax avoidanse - the general term for efforts to not pay taxes by illegal means.