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An offshore fund is a collective investment scheme domiciled in a tax-haven located on an island juristiction or another low tax financial centre considered 'offshore', for example British Virgin Islands, Luxembourg or Dublin. A collective investment scheme is a way of investing money with other people to participate in a wider range of investments than may be feasible for an individual investor and to share the costs of doing so. ...
In astrology, domicile, rulership or house is the strongest essential dignity of a planet. ...
A tax haven is a place where certain taxes are levied at a low rate or not at all. ...
An offshore company is one which does not conduct substantial business in its country of incorporation. ...
WGS-84 (GPS) Coordinates: 53. ...
Advantages Offshore funds offer eligible investors significant tax benefits compared to many high tax juristicitons such as the U.S. and EU. This page is about the country United States of America. ...
Many of these tax-haven locations are considered investor-friendly and are internationally regarded as the financially secure. The word investor may refer to: A person who makes investments Investor AB, a Swedish investment company institutional investor corporate investor This is a disambiguation page, a list of pages that otherwise might share the same title. ...
Many offshore jurisdictions, notably the British Virgin Islands, offer a zero-tax regime for investment funds which are domiciled there, which allows the fund to reinvest that part of its investment portfolio's gains which would otherwise have been lost to tax. In addition, the regulatory regime in these offshore jurisdictions is deliberately light, with emphasis placed on the importance of balancing effective regulation for the benefit of the protection of investors on the one hand, with the establishment of a regime in which the conduct of investment business is fast and simple.
Regulation Typically, the regulatory regime will take a two tier approach, making a distinction between funds which are offered generally to members of the public, which require a high degree of regulation because of the nature of potential investors, and non-public funds on the other. Typically, investors in non-public funds can be assumed to be sophisticated because of the nature of the offering - there may, for example, be a high minimum initial investment, say US$100,000, and/or a requirement that investors warrant that they are "professional investors". Or the fund will be designed for a small and select group of investors and the constitutional documents will limit the number of investors, say to no more than 50. Investment is a term with several closely related meanings in finance and economics. ...
The tax advantages of the funds encourage high tax countries to apply some draconian laws to limit their distribution. For example, offshore funds cannot be promoted or distributed within the United States or to any citizen of the United States. Draco is an Athenian law scribe, whose laws were described as Draconian. Draconian (D&D) refers to creatures unique to the Dragonlance fantasy world. ...
Criticism Critics, among whom ATTAC NGO, alleged that they are a main player of the underground economy, allowing legalized tax evasion, in particular through the usage of shell corporations practicing transfer pricing. Association for the Taxation of Financial Transactions for the Aid of Citizens (ATTAC - Association pour la Taxation des Transactions pour lAide aux Citoyens) is an activist organization for the establishment of a tax on exchange transactions. ...
The underground economy consists of all trade that occurs without detection by government so that commerce and income are not taxed. ...
This article contrasts tax evasion, tax avoidance, tax resistance and tax mitigation. ...
A shell corporation is defined in Barrons Finance & Investment Handbook as a company that is incorporated but has no significant assets or operations. ...
Transfer pricing refers to the pricing of goods and services within a multi-divisional organization. ...
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