| Off-Shore Investments |
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Offshore structures are legal What does the Taxman Say? "Every person is entitled, if he can, to order his affairs so that the tax attaching under the appropriate act is less than it would otherwise be. If he succeeds in ordering them so as to secure this result, then, however, unappreciative the government or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax". The Offshore Trust The Trust Deed (document that creates the Trust) is not registered with any government authority, but is held by the Offshore Trustee in strictest of confidence. The Trust Deed identifies the terms of the trust, and should have the name of beneficiaries, duration of the trust, and the powers of the trustee, including the power to invest the trust fund, distribute the trust fund to the beneficiaries, lend funds from the trust fund, and the right to move the trust fund to another jurisdiction should its preservation be in jeopardy. The investment advantage When this is combined with the reduced reporting and infrastructure costs that offshore investment institutions have to carry, it becomes very cost effective to offer improved returns while maintaining acceptable risk levels. On average, this results in a 2% higher rate of return for the same level of risk offshore then onshore. Compound this over a few years in a jurisdiction that has minimal or zero taxes on capital gains, and your portfolio can be as much as eight times larger. Fees |
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