Why Going Offshore Matters More in the Wake of the Paradise Papers
Why Offshore Companies are for Everyone
In the wake of the Paradise Paper leaks, there has been a public outcry in response to the revelation of documents connecting high profile figures and companies with offshore accounts in low-tax jurisdictions.
Though the Paradise Papers revealed no illegality, governments and the media have criticized those named in the documents accused of safeguarding wealth overseas to avoid paying higher tax rates.
Those named included the Queen of England, members of the US and Canadian Governments and Apple amongst others. Exploiting the public’s desire for sensationalism the media has continued to portray offshore banking and finance as a shadow world of illicit underground dealings failing to recognize that it provides a necessary service that enables and supports the globalized economic structure providing many services for industries across the spectrum.
On the surface the resentment seems understandable as the medias portrayal of offshore tax havens has skewed reality often blurring the lines of legality as a means to shock the polling middle class. The United States’s crackdown on tax avoidance and last years release of the Panama Papers has also fed into the public’s distrust of offshore companies.
Despite the continuing barrage of negative press as well as the tightening of tax loopholes by the OECD and other multi-lateral organizations, the Paradise Papers shows that not only is the offshore industry thriving, but is being used by some of the most recognized names in world today to invest and safeguard wealth. Offshore finance has its reach in all sectors of society and will continue to grow as more regular individuals become aware of the personal and financial opportunities afforded to them by taking their wealth offshore.
Individuals should be looking to diversify their assets to ensure they are protected, as a multi-jurisdictional structure gives one a reliable backup plan for the future. Global entrepreneurs and digital nomads with a non-local market base or who have international dealings greatly benefit from being able to incorporate in low tax markets that offer a wide range of options through competitive tax vehicles offered.
In today’s hyper-globalized economy, wherein a company based in a specific country makes its goods in one foreign market, are sold in another, both of which are outside the company’s country of residence is commonplace. Such complex business arrangement requires a structure that reflects the businesses scope. The need of shifting ones tax base to reflect this dynamic reality is not a luxury only for the wealthy but a matter of necessity for any regular individual.
International companies and the global elite are not the only ones that seek to minimize their tax burden, as any ordinary hardworking person seeks to maximize their savings, however the only difference being is that they have the foresight that allows them to pursue an offshore alternative. This being the case, the question is: Why are you not going offshore?
Contact us if going Offshore feels right for you.