What is a tax refuge?
Tax wound is a legal jurisdiction, such as a country or principality, where the tax rate is lower than in the surrounding areas. Tax havens are generally characterized by strong privacy protection, low tax rates and highly renowned banks. Traditionally, it is one of the most politically stable regions in the world. For example, the French Principality of Monaco provides tax benefits only to individuals who are legal residents. Tax benefits are so important that the small industry has grown to establish a stay for individuals who do not really want to live in Monaco. Other examples of tax havens are Switzerland, where resident foreigners can negotiate their level of taxation with local authorities, Norman islands where there is no taxation regarding foreign income and Gibraltar, where companies without significant business interests in Gibraltar themselves are charged flat taxes of the approximate $ 200.
individualI, who hope to benefit from moving assets to a tax haven, must be aware of possible legal consequences. While banks in the tax haven do not have to report the income of the Office for Domestic Taxation of the Client, the client has a legal obligation to report such income. This is especially true for the citizens of the United States; While most countries are taxing taxation, the United States only from citizenship. Regardless of where the American can live, all of their income is legally taxable in the United States. Incorrect reports obtained outside the country may represent tax evasion.
Corporations can use tax wounds by establishing their legal headquarters there. For example, many large American corporations locate its legal residence in Bermuda. In addition to tax benefits, this provides some legal protection in the case of civil disputes. Tom can also allow companies to circumvent regulatory problems in the home country.
The term Offshore bank is often used interchangeably with tax refuge. ANDwhen related concepts are not synonymous; Offshore bank is simply a bank located outside the home country of an individual.