Scandal with “Panama Papers” and legality of offshore business
June 9, 2016
The famous scandal with so-called “Panama Papers” has caused an indignation wave around the world regarding offshore business. A lot of people began to condemn business owners who keep their assets in offshore jurisdictions. The offshore companies were accused of an illegal withdrawal of capital, avoidance of taxes and other unlawful activities. But it is not the absolutely truth. Of course, some unfair individuals use offshore companies illegally, but it is the rare exception. If you use offshoring in a right way, you will get the legal business, protect your wealth, optimize the taxation and provide the future development.
Let’s talk about the legality of offshore formation. Without doubt it is legal when done in due course. If you want to be sure in some offshore questions, contact professional experts who can give you an advice how to organize your business legally. It is a common practice to protect wealth with the help of foundations, trusts, and international companies. It allows a supreme business protection.
What is meant by “Panama Papers” and why were people angry?
The famous “Panama Papers” is a real story which happened with company Mossack Fonseca situated in Panama. A large scope of private information was leaked from this company. And as a result of it all confidential information was open to public. Among clients were not only ordinary people, but famous politicians, artists, athletes who began to be suspected of illegal actions.
Approximately 11.6 million of documents were stolen; it is about 2.6 terabytes of data or 1,400 CD-ROMS. There were documents dating from 1977. The total amount of leak information, including financial reports, legal papers and other documents, was incredible large. This leak of information was even bigger than the scandal Snowden leak. And of course the majority of personal data belonged to offshore business made by different persons, companies and corporations.
The main reason why the leak of papers happened is that some people wanted to share personal information and to show crimes to public. Of course, there were some papers with illegal history but others were absolutely lawful. Crimes exist in all fields of our life; it doesn’t mean that all activities are illegal. It is the answer on question is an offshore legal? If individuals have money it’s no bad to use this wealth in a right way. And offshore business is one of the legal ways to use money correctly.
People register offshore company for many reasons. One of them is minimization of tax burden. But there are a lot of other causes to go offshore and there are a lot of ways to do it properly. For instance, you can set up trust or foundation and save your money legally.
We all know the fact that global economy is unstable. Markets in China, US and Europe can crash at any moment that will cause decreasing of economy growth, increasing problems in banking system and other complications. Every business owner or even ordinary person must think about diversification of money and assets in different countries. In such situation offshoring comes to the rescue.
We can make conclusion that offshore company creation is absolutely lawful. Unfortunately, some people use it for illegal operations and it is a reality. If we talk about business, offshoring has a significant sense for owners. Having an offshore company, you don’t need to pay large amounts of taxes; you can enjoy governmental privileges and other advantages. Nowadays everyone who wants to be successful should consider offshore business as one of the best legal ways to gain profit.
Whether it is safe to be engaged in offshores?
What is about security and confidentiality in offshore jurisdictions? Is it safe to keep your money and assets here? How can you be sure that your private information will be in secret? There are no guarantees anywhere. To avoid doubts and failure, you can consult with professional experts who have an advanced experience in offshore area. You will get advices about best jurisdictions for your business, company incorporation process, opening bank account and etc.
Choose the professional experts to be sure in legality of your offshore plans. There are a lot of pitfalls in legislation and only experienced consultants can help you to reach your goals without losses.