Password must be 8-15 alphanumeric characters with these requirements
- Minimum one number (0-9)
- Minimum lowercase letter (a-z)
- Minimum one uppercase letter (A-Z)
- Minimum one special character "#?!@$%^&*-+<=>"
- Example password 99azTR?!@
In economics a term “Offshore” can be defined as tax-free investments made by a natural or legal person in a country other than its country of residence. Offshore investments are also known as investments in tax havens or extraterritorial jurisdictions. What advantages and disadvantage do you have in offshore? Is it legal? Am I avoiding or evading taxes?
The causes that have led large companies and businessmen to transfer their money to offshore financial centers are: the tax burden of developed countries, wars and socio-migratory changes. The free movements of capital between countries and the access to Internet have contributed to the commercial expansion around the world providing companies and investors with the key tools to protect their money and save on taxes.
Transferring your funds to offshore is legal. The legality of the structures is based on the principle of "tax avoidance" taking advantage of all legal resources to avoid paying taxes. We should not confuse the definitions "tax avoidance" with "tax evasion". "Tax evasion" is the illegal behavior of a natural or legal person of not paying taxes. As we will see in the next section, countries such as the US, France, Italy, Spain, Chile, Argentina, Colombia and Germany are adopting measures so that taxpayers don´t transfer their funds to offshore and can not protect their assets or save on income taxes.
The global crisis and tax evasion has caused many countries to adopt anti-offshore measures. The anti-offshore measures could be defined as the laws that create the states to prevent taxpayers from opening accounts, companies, foundations or Trusts abroad. An example of anti-offshore measure would be, for example, the law of automatic exchange of information.
The purpose of the information exchange treaty is to eliminate the criminal activities from the banking circle and to increase the recollection of taxes. Please note that the automatic exchange treaty affects only personal and corporate bank accounts but does not affect any company that doesn´t have a corporate bank account opened in a country that has signed a bilateral agreement. Which means that in this case the financial information of this offshore company will not be reportable.
Right now the treaty of automatic exchange of information is causing many problems to the countries due to the fact that it is not a treaty in which banking information will be reported automatically among all the countries who signed it. In order to receive the information about the citizens who own accounts in other countries, the governments of these country should not only be members of the treaty but must sign a bilateral agreement between them in particular. If both countries have not signed the bilateral agreement, there will not be any kind of automatic exchange of information even if both of them are members of the treaty.
The essential advantages that offshore territories offer are the following: