Why setup an offshore company?

[SpaceConnect]

I am a bit confused about the benefits of setting up an offshore company. Perhaps someone here can explain what I am missing?

I have a legitimate UK company. Lets say I created an anonymous account, probably with Advcash, using dark docs from @auric. The account would be funded via fake "freelancer" invoices paid by the legitimate UK company.

In this situation, why would someone go to the trouble of setting up an offshore company, in addition to the Advcash account?

I'm sure I am missing something obvious, but I am not sure what!

 

[JohnLocke]

It depends very much on what your goals are in order to take out the money!

For instant you could setup a offshore company with darks and invoice this compant from your UK company which let you take out "black money" and launder it white. Or you could do the opposite to reduce the tax in the UK company and simply avoid to pay tax from the money you receive in the offshore corp.

It will depend very much on what the amounts are you generate and how much money you want to take out + what you want to use the money for.

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[SpaceConnect]

So lets say the eventual objective is to load an Advcash card with money which would be used for tax free spending in the UK. The amount of money would be limited to around £1000 / month.

Why would you need to setup an offshore company? Couldn't you just submit fake invoices for a non-existent company and provide the bank details for payment to the Advcash account?

I can understand that if you wanted to move money offshore in a legitimate way it would be best to create an offshore registered company, but if the objective is to just cyphon off say £1000 / month into a offshore credit card, is it really necessary to setup an offshore company?

 

[JohnLocke]

SpaceConnect said:
Couldn't you just submit fake invoices for a non-existent company and provide the bank details for payment to the Advcash account?
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That could work as long as no one from the tax office is going to audit you and start asking questions.

SpaceConnect said:
I can understand that if you wanted to move money offshore in a legitimate way it would be best to create an offshore registered company, but if the objective is to just cyphon off say £1000 / month into a offshore credit card, is it really necessary to setup an offshore company?
Click to expand...

If you don't think anyone is going to spend time on your business nor that you risk questions from the tax office I agree it's not worth to go that route.

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[negon]

SpaceConnect said:
So lets say the eventual objective is to load an Advcash card with money which would be used for tax free spending in the UK. The amount of money would be limited to around £1000 / month.
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if this is your goal I would not setup a offshore company for that purpose but rather setup a private account with darks and spend the money as you go.

 

[johnny811]

Admin said:
For instant you could setup a offshore company with darks and invoice this compant from your UK company which let you take out "black money" and launder it white. Or you could do the opposite to reduce the tax in the UK company and simply avoid to pay tax from the money you receive in the offshore corp.
Click to expand...

Couldn't you do the same but instead of darks use a Seychelles company, that owes the Cyprus company (to avoid using darks). You still get the anonymity.

Can you clarify how you transfer money to the UK Ltd via the Cyprus one, by only paying taxes in Cyprus?

Tell me if this example is correct:
Cyprus receives 10k. Pays corp tax of 12.5%, therefore 1250, so remaining funds in Cyprus Ltd 8750. I only want to transfer 5k to my UK Ltd.
How do I do this? Will I pay corp tax to the UK as well for the 5k? I would expect not under the DT treaty. Then, who invoices whom?

Apologies for the simplicity, noob here, trying to understand the structures.

 

[JohnLocke]

johnny811 said:
Couldn't you do the same but instead of darks use a Seychelles company, that owes the Cyprus company (to avoid using darks). You still get the anonymity.
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Today it is better to use a Belize company to avoid your personal information to be listed public. Seychelles has a registry public now where it is possible to see which companies are registered by a particular person.

If you make use of the double tax treaty that the UK has signed with Cyprus then you are obligated to pay corporate tax in Cyprus and by that you have no obligations to pay tax in the UK.

The you need to transfer the money from the Cyprus corp to the UK corp either as dividend or somehow else, you may ask a tax consultant about your obtions here.

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[johnny811]

So as far as offshores go, Seychelles is pretty much done with, in the sense that it's not worth it, as opposed to Belize. That's what I understand.

 

[JohnLocke]

Seychelles and Cyprus have some great tax agreement, so for that reason I would not say it is dead, you simply just need to put in nominee services to protect your privacy. I'm actually not sure if they will show the UBO (Ultimate Beneficial Owner) at the public registry or only shareholder and director.

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[roci]

Admin said:
Seychelles and Cyprus have some great tax agreement, so for that reason I would not say it is dead, you simply just need to put in nominee services to protect your privacy. I'm actually not sure if they will show the UBO (Ultimate Beneficial Owner) at the public registry or only shareholder and director.
Click to expand...

You are correct admin. No UBO in the Seychelles registry from what I have seen.
Seychelles company ownership register | Alpha Consulting

 

[Spinat]

Seems Seychelles with nominees is still a good alternative compared to many other jurisdictions which got blacklisted!

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