Offshore Tax Avoidance And Offshore Tax Evasion

One might consider that moving offshore is basically a question of transferring highly profitable business activities to more favorable tax jurisdictions. Although the basic idea is very straightforward, the reality behind it is much more subtle. While avoiding taxation is legal, evading it is not. E-businesses need to have a very clear understanding of what is permissible, of what falls within a grey – hence risky – area, and of what constitutes plain and simple fraud.

The following questions have been addressed in this article:

What is tax evasion?
Does moving offshore for tax purposes equal evading taxes?
What are the different types of offshore e-commerce transactions?
In the context of offshore e-commerce, how can we distinguish tax evasion from tax avoidance?
What are the sanctions for tax fraud?

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