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Tax Havens

Essay by   •  April 9, 2019  •  Exam  •  808 Words (4 Pages)  •  60 Views

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the Tax Havens offer numerous advantages. The reasons why more and more investors use them are that they offer a very low tax burden and allow the creation of offshore companies that provide greater privacy, in addition to having legislation that emphasizes the protection of investors and their assets. An increasing number of people use tax havens in order to limit the high levels of taxes they pay in their countries of residence.

In a Tax Haven foreign investors who hold bank accounts or constitute companies in their territory are exempt from paying taxes. In this way two different tax systems coexist.paraisos fiscal

The Protection of Assets is one of the main reasons why companies and individuals open accounts in Tax Havens. Due to the strong privacy legislation in place at many of these offshore financial centers, it is very difficult for a third party to obtain access to information on foreign accounts, investments or trusts.

With the development of online banking, it is now possible to access and operate from anywhere in the world easily and with absolute confidentiality and security.

Of course, it is essential to have the right advice before making such important financial decisions. It is imperative that the offshore financial center you choose is tailored to your asset protection needs and your tax needs. Our years of experience in the offshore industry allow us to help you in determining the most appropriate jurisdiction for you and your business.

                  Tax evasion, tax avoidance and fiscal savings are three closely related terms that often tend to be confused. However, its legal and legal implications may be very different, and may even vary its interpretation from one country to another.

Frequently we find on the web discussions about what should be understood by evasion and what should be understood by circumvention, giving a generalized connotation where the first is ILLEGAL and also CRIME and the second is LEGAL, without making territorial differentiations. In some continents and certainly in some countries, especially in the United States and Europe, these concepts are understood in this way, however in Latin America some countries such as Colombia and Venezuela these two concepts are classified as a FISCAL FRAUD and both figures are considered ILLEGAL.

Tax evasion: Any act that involves ignoring a completely regulated rule, hiding or altering economic events with the sole purpose of reducing the taxes payable. Hide income, assets, increase expenses without being caused or real, increase non-existent liabilities, are typical examples of evasion.

Tax avoidance: It is the use of the deficiencies in the legal definitions of the different situations or simply of situations not contemplated, that is to say, legal void. In some countries there are doctrines that determine for some cases WHAT IS NOT EXPRESSLY PROHIBITED THIS ALMOST ALLOWED, allowing to fall into wrong decisions when trying to accommodate the rule to the benefit of the taxpayer declarer.

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