Offshore Finance

A thumbnail sketch

The primary objective of this book is to provide information about the ‘Offshore’ environment. In doing so, an attempt has been made to describe the origins of ‘Offshore’, to place it in context and to define some terms that are considered relevant. However, since ‘Offshore’ does not exist in a vacuum, the text includes reference to other environments – alongside which ‘Offshore’ operates – including the ‘Onshore’ environment. Comparisons were made between ‘Offshore’ and jurisdictions, which, while not ordinarily referred to as OFCs, nevertheless offer similar services. Whether ‘Offshore’ or ‘Onshore’, the text identified taxation as one of the most significant factors in giving any finance centre a raison d'être.

Since taxation is a major component in economic global enterprise, so also is tax mitigation – and this explains why many financial centres benefit from being used by taxpayers (ranging from individuals to multinational companies) as components in tax mitigation strategies. No one is obliged to pay more tax than is due. Consequently, taxpayers are entitled to use finance centres to mitigate their tax if they so choose. Taxpayers are not entitled to evade tax. Perfect positive correlation between ‘Offshore’ finance centres and the evasion of tax has not been proved beyond reasonable doubt.