Offshore Tax StrategiesAs indicated in the summary entitled “A Main Reason for Moving Offshore: Avoiding Taxes,” the main idea behind international tax schemes is simple; it consists in taking advantage of the difference in tax rates between high-tax Western countries and International Offshore Financial Centers (“IOFC”), by locating streams of companies profit offshore.
The following questions have been addressed in this article:What are the basic international tax rules?
What is the basic strategy?
What does that strategy require?
Practically, how can an e-business assign streams of income to an offshore company?