One of the most important aspects for what an offshore environment is known is represented by tax optimization opportunities, but it absolutely does not mean that there are no taxes in the whole offshore zone. Each jurisdiction has its own laws and rules, that are necessary to research, study and understand in order to take advantage of the opportunities that particular jurisdiction offers.

In so called tax heavens non-residents often are not liable to direct taxes, which are however applicable to residents. Even various onshore jurisdictions such as UK, Canada, Netherlands are used for the offshore purposes. It is always a question of the knowledge and deep understanding of the characteristic features of each particular country and its legislation that can be used for major benefits for personal affairs or business objectives.

When looking for tax optimization it is important to distinguish between tax avoidance and tax evasion, which are two different activities.

Tax avoidance is a legal activity that involves all the necessary procedures in order to minimize tax liabilities for a person or business, that is 100% legal and corresponds to the existent law.

In its turn, tax evasion is illegal avoidance of paying taxes to the authority that is a serious offence.

There are diverse procedures to be conducted in different jurisdictions in order to achieve and perform efficient tax avoidance actions, therefore it is strongly suggested to address an international financial consultancy company that will be able to work out the right solution for the needs of every client individually.

Onshore jurisdictions are concerned not only about tax evasion, but even about tax avoidance procedures, as significant capitals are directed towards offshore zones. That is why they join in the international organizations in order to cooperate against this tendency.

It has been agreed that every tax avoidance plan undertaken by an individual or a company should be understood and evaluated as only a part of a more complex business scenario containing other significant elements. Pure tax avoidance procedure might require a special investigation and, if necessary, the onshore authority can make additional laws in order to make some assets and transactions taxable in that particular case.

Tax optimizations procedures made with the lack of knowledge, care or attention may lead to undesired consequences. It is important to be experts in all the jurisdiction’s laws details, to know local habits, traditions, lifestyle and practices in order to undertake and implement a right action plan for a non-resident entity. An experienced financial consultancy company with good international reputation and solid values is the clue in helping you structure the business in the most efficient way.