After the crisis of 2007 the market of OTC derivatives was named as shadow banking system: http://en.wikipedia.org/wiki/Shadow_banking_system.
Offshore business have much more capital without taxing than OTC derivatives market before crisis. http://en.wikipedia.org/wiki/Offshore_financial_centre
This capital is not taxed in domestic countries and in countries where he works.
Is this the social and economic fair business?
Of course, it is the second option which is true! Officially however, all governments concerned will vote for the first one!
@Sylantyev, not fair at all. My country, your country as well as all former socialist countries are full of such tax free capital that was invested in dirty privatization! Right?
The first question would be the origin of that capital!
The second choice is true! all states concerned will vote for the first one
Dear Sylantyev
Offshore company is an entity located abroad, subject to a different legal regime , " extraterritorial " in relation to the country of domicile of its members .
Offshore companies are called so often by being under the law of the country that such fence companies do business within the proper jurisdiction of the country in which it was formed - hence the term offshore , which in English means " outside the borders " because the companies , by law , must practice business only in jurisdictions other than those in which they had been incurred .
The higher the existing tax burden in some countries , the greater the interest of companies and individuals in making investments abroad , attracted by numerous factors , such as strong currencies , economic and political stability , tax exemptions or reduced tax
Transactions undertaken with offshore companies , have legal support , while respecting the rules of the countries involved and have no unlawful purpose .
Offshore companies are instances that arise by commercial practice , prompted by legal systems of different countries , which motivate the search for sensitive investments , through the formal incorporation of companies in the nation , under the benefits of anonymity , reduction or tax exemption , clearance documentary , among others . With this, it is essential to note the specific laws of each country in relation to tax, corporate and commercial procedures
The attempt or decision to act to reduce their tax burden in legal alternatives , is a right of every citizen who is not , and could not be required to follow rules in order to increase tax revenues of his country
Despite the legality of this commercial transactions , for sure it is an evasion of income, making an unequal investment with negative impacts in the social and economic area in the country of origin
I think it is certtainly a nice process for tax evation and a great mockery of taxpayers for every country. What is the meaning of an offshore company? What is the benefit to the society of the existense of such a compny? Nothing at all. It is a kind of fraud of the "white collar".
Offshore: Tax Havens and the Rule of Global Crime
by ALAIN DENEAULT
http://thenewpress.com/index.php?option=com_title&task=view_title&metaproductid=1829
Offshore reveals how a vast network of unregulated financial centers—from Luxembourg to the Cayman islands to the tiny Pacific haven of Nauru—has evolved into an enormous nether realm of drug and arms trading ungoverned by national laws. Delving into the scandals, the financial structure, and the history of this hidden side of globalization, sociologist Alain Deneault depicts something larger and more ominous than simple “tax havens” where financial elites and corporations must reside to protect their earnings. Instead, Offshore describes a global base of operations from which massive criminal enterprises and corrupt corporations operate freely and with impunity, menacing developing nations and advanced democracies alike.
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