Users & uses of Ofshore Centres Flashcards
Who are the users
HNWIs usually advised by professionals (tax advisors, lawyers, accountants)
Charities
Entrepreneurs
Trading companies
Multinational or small companies
*anyone wishes to secure an advantage not available in own jurisdiction
Outline main legal uses / services offered
Funds
Corporate services
Holding & investment companies
Private wealth & structuring
Trust
Real estate
Captive insurance companies
EBT
*tax efficient structuring of international trades / offshore can help reduce liability
Outline typical features of offshore centres
Zero/ low tax
Less stringent regulation / reduced disclosure requirements
No ERCs
Privacy & confidentiality provisions
High level expertise in finance centre
Asset protection structures (something owned or which can benefit by having economic value) / trusts & companies connected by ownership - meet needs of client group
Outline locations of offshore centres
Crown Dependencies
- self gov jurisdiction
- independent legislation
- Autonomy (domestic affairs)
- own legal system
- not part of EU
Bailiwick of JSY & GSY / Isle of Man
British overseas terrorities
- Gibraltar (self gov - part of EU)
- BVI (non self gov)
- Cayman Islands
Mainland
- Monaco
- Liechtenstein
Others
- Bahamas
- Cyprus
- Malta
Outline factors influencing choice of offshore centres (A)
+Niche Markets development (specialists)
+Independence
+reputation (implement international standards)
+confidentiality & privacy provisions
+physical & human infrastructure (time zones, locations onshore, robust tech, professionals)
+political infrastructure
+economic stability
+tax environment; type of taxes subject to, taxation agreements, scope for deferral, registration requirements)
+personal circumstances; content of legal advice, business activities, country of residence, objectives)
Outline factors to consider choosing an offshore centre (2)
Legal system;
+Common Law or civil law
+familiarity
+flexibility (articles provisions)
+lack of ERCs (freedom of fund movement)
+range of entities / products available
+responsibilities to clients needs (fast track incorp)
+access to stock exchanges
+administration requirements
+asset protection legislation (protect against forced heirship)
+independence
Factors to consider choosing An offshore service provider
+regulated
+qualified / experienced at services or jurisdiction / ability to liaise with same members of staff is attractive
+size of Organisation/ suitable to clients
+fees reasonable & transparent
+reputable/ good reg track record / enables attraction & retention of clients
+high levels of customer service
+efficiency & customer Service
+investment polices (in line with clients)
Some SP won’t provide services if;
+only registered office
+clients located high risk jurisdictions or activities
+unable to provide business under license
+lack of experience in specific field
