The present work aims to analyze the terms Tax Havens and Offshore Crimes.
In the first chapter of this work, the definition of tax havens, their characteristics, advantages and countries where it is applied will be established. In this sense, the most important points of the Tax Havens will be developed, a globalized issue, considered by many territories used to avoid tax burden. Likewise, cases related to the topic developed in this work will be mentioned. In the second chapter we develop the most important points of offshore companies, establishing their definition, characteristics and we will mention when an offshore company is legal or illegal. Finally we will show statistics of the topics covered, casuistry and conclusions and recommendations.
A tax haven is a state or territory which is characterized by applying a tax regime that favors non-resident companies and citizens who are domiciled in it for legal purposes, exempts foreign investors who maintain bank accounts or constitute companies in its jurisdiction. In general, tax havens offer advantages for a total exemption or a significant reduction of the tax payment as well as bank secrecy. Citizens and companies in their own country are obliged to pay taxes, but in tax havens there is a total or significant exemption from the tax to be paid. As usual,Small states are the ones that apply this type of tax policy to attract foreign money and strengthen their economy, a clear example being Panama, which has been declared by several countries as a tax haven. It should be noted, within the tax haven itself foreigners cannot do business.
On the other hand, offshore companies are related to tax havens. It refers to companies which are constituted outside their country of residence creating tax havens to avoid or significantly reduce the payment of taxes because the tax burden is higher in their countries of residence, it also provides confidentiality and security.
However, these types of companies are easy to set up and can be used to hide assets, money from illegal activities, or to hide money from the treasury or the authorities of the country of residence.
Historical background
Tax havens
The historical evolution of tax havens originated in the second half of the 20th century. Its rise responds to the industrial and economic development of the post-war years, as well as to the decolonization process of some European powers. In this way, motivated by various circumstances, some territories designed tax systems capable of attracting foreign capital, using the most varied legal-tax structures for this.
Although the name "paradises" or rather "tax havens" began to be used at the beginning of the 20th century, its existence dates back to Ancient Greece where merchants to avoid paying the 2% tax on merchandise, they stored it on the small neighboring islands; In the Middle Ages, some merchants who settled in London were exempted from paying taxes and during the 16th and 18th centuries the Flanders region was a tax haven with respect to the trade that took place in its ports.
In such a way that tax havens were not born with money laundering, on the contrary, the "organizing launderers" (they design, supervise the laundering and contribute / choose the executors) take advantage of the possibilities offered by these financial centers.
Specifically, after the imposition in the United States of controls on the movement of capital to stop the flow of money from organized crime in general and drug trafficking in particular, tax havens were "discovered" by money launderers as areas ideal for implementing the bleaching process.
This phenomenon has caused the original concept of tax haven or refuge, understood as a jurisdiction with low or no taxation, currently being identified with the lack of tax transparency and non-cooperation for the exchange of information on tax matters.
This is how it is understood by the two main international organizations that deal with the subject: the Organization for Economic Cooperation and Development (OECD / OECD) and the Financial Stability Forum (FSF), an organization that in 2000 introduced the concept of "Off-Financial Center -Shore ”(Offshore Financial Center OFC).
Some territories based their tax systems based on the principle of territoriality, such as Costa Rica, Hong Kong or Panama. Other territories such as the Isle of Man, Holland, Luxembourg or Switzerland have had no greater reasons than tax competition, even in some small states, among which several former colonies of world powers stand out, these tax practices were constituted, since their start, in an activity to obtain resources.
Tax havens are not static figures, but have had a process of evolution over time. The concept of tax haven, conceived as that paradisiac island or privileged territory where taxation was absolutely nil, is being transformed into territories with more rigid laws and the existence of some previously unthinkable controls.
The aforementioned makes the industrialized countries want to stop and / or discourage the use of these territories due to the damage they cause to the global economy. The economic and financial power that these territories have acquired appears threatening in the eyes of those countries that, in one way or another, actively or passively, have contributed to the configuration of this phenomenon (MARLON, 2009, pp. 38-39).
With this background that has been generated in history on this issue, industrial countries began to take the initiative to add high income tax percentages to their tax regulations to avoid the use of FP. While the industrialized countries considered the need to increase their income, the contiguous countries, taking advantage of the circumstances, considered the need to add to their legislation the legal and legitimate constitution of offshore companies with no or low tax burden.
Offshore crimes:
As the tax burden increased in certain countries (ordinary taxation); in others (countries with low or no taxation) the idea of implementing a tax exemption policy for foreigners who invest in their countries was raised in order to attract their capital. Investors attracted by the legal regime decide to invest abroad by creating so-called “offshore” companies (trust or foundation, commercial companies
extraterritorial entities established outside the borders of a country) especially in “free zones” where they do not carry out any commercial activity. This type of offshore companies are managed by legal entities or foreign natural persons, who use the tax haven with the idea of domiciling the company to benefit from the tax and legal benefits of that country despite the fact that their business is handled in other states Worldwide.
Economic globalization has undoubtedly been the greatest connection that countries have, because trade barriers have been eliminated and it has led to the possibility of investing capital where it is believed beneficial to do so, due to the principle of freedom, some have undoubtedly decided to draw from their country of origin where, finding no prohibition but great tax advantages such as tax exemption for those who do not reside in offshore centers, and with no control of their movements, they believe they can do so.
The history of tax havens is undoubtedly the product of the tax benefits that these jurisdictions have created as an investment tool for natural or legal persons (investors) who constitute said “offshore companies” in foreign jurisdictions with tax advantages to reduce their burden. tax.
The issue is remarkable since some countries have experienced a progressive increase in the tax burden on corporate income tax and directly on individuals, which has caused nearby jurisdictions of industrial countries to try to attract foreign wealth in exchange. of certain benefits such as secrecy, privacy, confidentiality, reliability. Throughout history, tax havens have been attacked in the same way for being the protection of tax fraudsters, and protectionists of perpetrators of crimes such as terrorism, drug trafficking that have been hidden in offshore companies.
CHAPTER I Tax Havens.
Definition:
It is a territory or State that is characterized by applying a tax regime especially favorable to citizens and non-resident companies that are domiciled for legal purposes in it. Typically, these advantages consist of a total exemption or a very significant reduction in the payment of main taxes, as well as bank secrecy.
Tax havens are generally small states, whose laws, apart from establishing privileged tax regimes with large tax benefits, draw the attention of those taxpayers persecuted by high taxes in their country of origin, decide to transfer their assets to the new offshore company and benefit from the tax advantages that said territory offers.
Characteristics:
Tax havens in the world have specific characteristics that allow their identification:
- They have few or no agreements with other countries on tax matters. They offer companies and citizens protection of banking and commercial secrecy. They do not have capital movements control regulations (origin or destination). This allows money laundering and recycling of capital. They have a system that allows the coexistence of a tax regime for nationals and another for foreigners. They have a legal, accounting and fiscal infrastructure that allows freedom of movement of people and goods.
Advantage:
There are innumerable tax advantages that companies or citizens who reside there receive. Among them we can mention:
- The partial or total exemption from the payment of taxes Offer laws or regulations that do not allow the exchange of information for tax purposes with other countries One of the main advantages is the confidentiality of the banks of the depositors' names, giving way to Many times it is tried to hide in these territories the money coming from crimes to what is called money laundering, drug trafficking.
A tax haven can be enjoyed by both natural and legal persons. Natural persons enjoy the privileges of a tax haven residing in that country (not in all cases). Tax burdens are avoided in these places, but inheritances and bequests can also be planned.
Legal entities take advantage of not being subject to tax on profits obtained by companies incorporated in those countries, of the freedom of capital movements and of the dividends they receive from subsidiaries.
Tax havens seek to attract foreign direct investment (FDI) from non-residents and in exchange for that benefit them with great tax advantages to what would be called (harmful tax competition), because what investors seek is to reduce their tax burden in the country of origin of income since they consider that the tax burden is high and hurts their profits and that is why they look for mechanisms such as tax havens to maintain their profits in large proportion.
✓ With this background that has been generated in history on this issue, industrial countries began to take the initiative to add high income tax percentages to their fiscal regulations to avoid the use of FP. While the industrialized countries considered the need to increase their income, the contiguous countries, taking advantage of the circumstances, considered the need to add to their legislation the legal and legitimate constitution of offshore companies with no or low tax burden.
Countries where it applies:
- Andorra, Korea, Anguilla, Latvia, Antigua and Barbuda, Lebanon, Aruba, Liberia, Austria, Liechtenstein, Bahamas, Luxembourg, Bahrain, Macao, Barbados, Malaysia, Belgium, Maldives, Belize, Malta, Bermuda, Marshall Islands, Botswana, Mauritius, British Virgin Islands, Monaco, Brunei Darussalam, Montserrat, Canada, Nauru, Cayman Islands, Netherlands, Cook Islands, Netherlands Antilles, Costa Rica, Panama, Cyprus, Philippines, Denmark, Portugal, Dominica, Samoa, France, San Marino, Germany, Seychelles, Ghana, Singapore, Gibraltar, Spain, Grenada, Saint Kitts and Nevis, Guatemala, Saint Lucia, Guernsey, Saint Vincent and the Grenadines, Hong Kong, Switzerland, Hungary, Turks and Caicos Islands, India, United Arab Emirates, Ireland, UK, Isle of Man, Uruguay, Israel, US Virgin Islands, Italy, US, Japan, Vanuatu, Jersey.
Source: El Mundo newspaper website
2. CHAPTER II OFFSHORE COMPANIES
Definitions:
The term "offshore" refers to activities carried out outside the territory, that is, extraterritorial in reference to who had the idea of establishing it in said territory, state, country or jurisdiction.
In addition, it is a term that defines activities carried out in the country of residence.
In the financial, tax and corporate language "offshore" includes any investment activity that is carried out outside the borders of the investor's country of residence, an example is "offshore" companies, companies incorporated abroad for economic purposes, because the Society as a legal entity is regulated by the country where it was incorporated, and many times they are Tax Havens, where the owner, that is, a partner or shareholder of the company only invests in said territory with the aim of reducing the tax burden on its economic operations that generate rent.
The birth of this type of company is almost contemporaneous with the birth of the use of Tax Havens, specifically created to differentiate investment.
In this way, Tax Havens are considered as offshore financial centers with great advantages of harmful tax competition for countries with ordinary taxation. Each country creates or obtains its own list of territories designated as tax havens, which are created in order to be able to follow up on taxpayers who intend to harm the
Tax Administration taking income from the country of origin and transferring economic savings to offshore companies.
Tax havens are also considered “offshore” or extraterritorial financial centers because their services are designed for non-resident companies or individuals. Mainly, tax havens are used by natural persons who have a large capital and do not wish to pay taxes on its income, and legal persons who wish to do business through anonymous offshore companies and reduce or eliminate the tax burden.
characteristics
- The main characteristic of an Offshore company is that it does not do business in the territory where it is incorporated since it would become an Onshore company.The main motivation for creating an Offshore company is that they are usually established in countries where the taxation for these companies is low or non-existent Low legal and commercial regulation for Offshore Companies These companies can be constituted at a very low cost and very easily They are usually used to protect assets against public finances in the taxpayers' countries of residence. confidentiality and privacy of the data of these companies. There are no records of who the owners are, there is no accounting and there is no record of the bank accounts that these companies have.
3. Are tax havens and offshore companies crimes?
It is important to note that a tax offense is not committed by having an Offshore company in a Tax Haven, the tax contingency arises from avoiding taxes that should be declared in the territory of origin. For example, in most cases a tax contingency appears as bank interests are not taxed on the income of Individuals from the capitals that are introduced in these companies that are used as assets.
Creating a society of these characteristics is difficult; It is easy to find websites where all the information related to this type of company and the requirements to create it is provided; In addition, most of the people who create these companies usually have contact with large law firms or certain bank branches in the countries where offshore companies are created.
Creating offshore companies is not illegal, nor is it illegal to have money in tax havens, but it could become so if it is created to hide assets (in order to avoid paying taxes), or the illicit origin of capital. These companies are subject to very lax legal and fiscal regulations, which entail an almost total tax exemption.
Added to these are tax advantages such as: simplicity in their creation (they can be constituted in little more than 48 hours and with minimal documentation), simplicity in their administration (not being obliged to present the annual accounts in some jurisdictions), under economic cost, etc.
Some Spanish multinationals have or have had offshore subsidiaries to operate in other more unstable countries or where commercial traffic is governed by less secure regulations.
It is legal, therefore, in the context of more advantageous tax planning, to set up these companies, but their special characteristics are mainly the opacity and anonymity they provide to the beneficial owners as a means to avoid paying taxes, which is punishable in the Article 305 of the Penal Code.
Therefore, we can affirm that offshore companies are legal, what is illegal is to use them as a means to commit a tax crime or against the Public Treasury.
That is, although 'offshore' companies are not taxed in the country where they are domiciled, the assets and goods with which they operate must have paid the corresponding taxes in the country in which they originated.
Practice indicates that through these opaque companies, multiple economic operations can be carried out that are hidden from the Administration, which favors the avoidance of foreign exchange, non-payment of taxes and money laundering.
The terrain that separates legality from illegality in offshore companies and tax havens is more diffuse than it may seem a priori, and not everything revealed by the Panama Papers is necessarily a crime. Tax avoidance is a complex phenomenon, used by companies, companies and individuals around the world and which arises, to a great extent, at the mercy of the end of the obstacles to the movement of capital. In the background, the conversation revolves around its moral and legal implications, without both being always at the same level.
Although the vast majority of offshore companies follow the rules and regulations that guarantee their ethical operation, there are those who try to use their companies for illicit purposes.
Illegitimate uses of offshore companies can lead to illegal action in your home or host country. Therefore, it is important to ensure compliance with regulations to avoid legal problems in the future.
4. TOPIC STATISTICS
Below are statistics related to tax havens and offshore companies.
Several cases from the United States are related to the Panama Papers whose database was published. Here are some of them:
Next, the main tax havens of the Panama Papers are shown, which thanks to the more than 11 million documents from Mossaack Fonseca it was possible to make a ranking of the countries that have a greater number of offshore companies, which were created in the Panamanian firm, being the British Virgin Islands the first with 113,648 offshore companies created.
According to the discovered materials, which include 11.5 million documents from Mossack Fonseca, the law firm worked with more than 14,000 banks, law firms and other intermediaries to establish more than 210,000 companies, 'ghost' foundations for clients in havens. tax, the so-called 'offshore'.
The map below shows the ten countries with the highest number of companies involved in the scandal. Hong Kong (2,212 companies), the UK (1,924), Switzerland (1,223) and the US (617) top the list.
There are financial groups in our country that created parent companies and subsidiaries of their companies in the main tax havens of the world, such as:
- Cayman IslandBermudaBritish VirginsPanamaBahamas BelizeCyprus
The list includes the following companies:
- CredicorpBreca, IntercorpBelcorpGloriaHochschildFerreyrosD & C
All of them register addresses in territories considered "of low or null taxation" by the National Superintendency of Tax Administration (SUNAT) and other organizations, because they allow to avoid or reduce the payment of taxes, avoid the tax regulations of their countries of origin and protect the secret of your millionaire income.
According to SUNAT, North America is the place with the most tax havens, followed by Europe respectively. SUNAT has revealed that some 1,223 Peruvian companies have declared that they have as partners companies located in tax havens, but in reality there would be more than 70,000 offshore companies created by Peruvians .
Facts about the Panama Papers case
The types of data and number of documents published about the Panama Papers case are shown below.
According to ICIJ (International Consortium of Investigative Journalists) analysis, more than 500 banks and their subsidiaries have registered shell companies through Mossack Fonseca. Only the British bank HSBC and its associated companies have registered 2,300. As far as is known, the following ten banks are the ones that founded the most offshore companies for their clients
The Panama Papers expose the internal workings of one of the world's leading firms in the incorporation of offshore entities, Panama-headquarters Mossack Fonseca. The 2.6 terabyte of data finding on the basis of this research contains nearly 40 years of records, and includes information on more than 210,000 companies in 21 offshore jurisdictions.
5. CASUISTICS:
- Approximately in 1920, Switzerland through its banking secrecy is considered an important financial center, wealthy families constituted “trusts”, like, a class of companies that excluded foreign income from income tax (IR). In 1932 in France a crime of tax evasion is configured through Swiss entities and this begins to incite the idea of incorporating companies in tax havens.In the 19th century the United Kingdom already maintained a optional position on the use of Tax Havens, so it was decided to application of Income Tax to residents of all its businesses, whether locally or globally. In Argentina, through Law 11682 regarding income tax, the source criterion was already decided as a criterion of tax authority. In 2016,The investigation called 'Panama Papers' is the largest leak of documents (11 million) in history where businesses of politicians, businessmen, footballers and other personalities worldwide are consigned who would have tried to evade taxes by creating offshore companies and capitalizing their amounts to through the company Mossack Fonseca, from Panama. A case similar to Wikileaks. This case also called 'Panama Leaks' is similar to 'Wikileaks'. The difference lies in the fact that the investigation has consigned documents and not emails. They have been around 400 journalists from different countries of the world who initiated the investigations and reached the conclusions after several months of work. The International Consortium of Investigative Journalists (ICIJ) has claimed credit for this investigation.
One of the pieces of this gigantic global corporate network is Latin America. In the various maneuvers of the corporate sector, organizations that fight against tax evasion and avoidance estimate that almost US $ 6 trillion has disappeared from the region between 2002 and 2011. “Multinationals overbill imports and underbill exports, inflate costs with apocryphal invoices or non-existent services such as to earn less where they pay more taxes and earn more where they pay a tax close to zero, that is, in a tax haven », The Peruvians Keiko Fujimori, Alejandro Toledo, Alberto Fujimori and Vladimiro Montesinos are also involved, according to this investigation, through third parties who have participated in the Mossack Fonseca company to make money remittances.
The genesis of the problem. The key to this disclosure points to the Panamanian company Mossack Fonseca, which is responsible for entering companies in the local commercial registry and creating offshore companies so that those involved from different countries can evade taxes.
Those involved. Others such as the King of Saudi Arabia, Salmán bin Abdulaziz, the British Ian Cameron, the President of Argentina, Mauricio Macri, cousins of the President of Syria, Bachar Al Asad, the President of Ukraine, Petro Porochenko and even soccer players like Lionel Messi, Iván Zamorano, Gabriel Heinze, and other FIFA leaders are also involved according to the investigation in this global scandal.
- ARGENTINA AND 'BLUE' SOYBEANS, soybeans represent around 20% of shipments abroad from Argentina and was an important factor in the more than 5% average annual growth of the Gross Domestic Product (GDP) registered between 2003 and 2013.
But for years there have been two soybeans in Argentina: the legal one and the "Blue". Specialized consultants estimate that this black marketing of the «blue» market reaches 20 million tons.
"The" blue "begins when a producer decides to sell his beans in black to a shell or apocryphal company that the tax authorities call APOC. All the protagonists of the export process participate in this circuit: collectors, transporters, insurers », The champions of the free market at all costs argue that the "blue" is a defensive maneuver in the face of an abusive state tax on soy production.
One of the first measures of President Mauricio Macri when he took office last December was to reduce the tax paid on soybeans by 5%.
With this measure, the new government seeks to increase production and even improve collection in the medium term under the premise that the lower the tax burden, the less tax evasion and avoidance.
- BRAZIL: WHO EXPORTS IRON TO CHINA? Brazil is the world's leading iron exporter: China the world's leading consumer. However, although China is the main destination for Brazil's iron exports, the main buyers of the product are in Switzerland and the Cayman Islands.
In 2013, for example, Brazil sold Switzerland around US $ 26 billion in iron. The entanglement is such that the world's main iron exporter, the Brazilian Vale, had problems with both the Swiss and Brazilian treasuries.
In December 2012 it reached an agreement with the Swiss authorities on, in the words of the same company, "the differences in the interpretation of the tax exemptions granted in 2006".
The case in Brazil began in 2001 for some US $ 17 billion of tax debt. At the end of 2013, Vale agreed to pay about half of that sum, most of it in installments spread over 179 months.
In 2014, the government of Dilma Rousseff signed a decree for multinationals that operate with tax havens to pay a presumed tax.
"The big problem is that the tax authorities do not have the resources to oversee such a complex operation," Bejarano told BBC Mundo.
Already in 2013 an exhaustive report by the Comptroller General of the Republic on the mining sector warned of the very low taxation of a sector that represents almost 7% of the Gross Domestic Product (GDP).
According to Juan Ricardo Ortega, former director of the National Tax and Customs Directorate (DIAN), tax havens were central to the operation, although they did not receive a single piece of coal.
In an interview with the newspaper "Portafolio" Ortega calculated that some mining companies sell coal at a loss to a subsidiary in a tax haven, which in turn resells it for almost twice as much in Europe.
The tax reform approved in 2012 and the decree on tax havens the following year are the main tools the government has today to avoid these maneuvers.
“Colombia has made some progress, but it cannot be said that they are fighting it thoroughly. Triangulation processes in Colombia are even more complex than in Brazil because the country is part of different bilateral free trade agreements that tend to facilitate this mechanism and DIAN does not have the human resources to combat it, ”says Bejarano.
- COSTA RICA OR THE PINEAPPLE ROUTE. - In the last 15 years, pineapple has become one of Costa Rica's main export products, displacing coffee and bananas. 65% of pineapple production and export depends on the multinational Fresh Del Monte. This multinational is based in a tax haven, the Cayman Islands, a British overseas territory. The Caymans have about 56,000 inhabitants and an area of 264 square kilometers. In this sparse territory, the multinational has, in addition to its global headquarters, some 30 subsidiaries.
The Costa Rican expert Jorge Coronado Marroquín, from the Latin America Tax Justice Network, described the pineapple operation to BBC Mundo. “The sector is a« reconversion »or« recycling »of the historic banana companies that have been operating in Costa Rica since the beginning of the 20th century. The fundamental change is that they delivered approximately 50% of the production to national producers, but the export is entirely in the hands of the transnationals Del Monte, Chiquita Brands and other US companies, "said Coronado Marroquín.
Via tax haven, the export price paid to Costa Rica triples by the time it reaches Europe. In Europe there is one of those metamorphoses whereby Belgium, the Netherlands and Germany become some of the top 10 pineapple exporting countries, a product that, as is public knowledge, they do not grow.
Conclusions and recommendations
- The easy way to set up an “offshore company” is the one that makes foreign investors more interested. The steps to follow in order to create this type of company do not require greater financial or time expense; There is the possibility that they may be established without the investor having to travel to the country where he intends to create his company, it can even be done via the internet and even a quick way is that many countries of this type are the ones that create paper companies to sell it in a immediate when a client requires it, the will of the partners not existing at the time of the company formation Tax havens are territories of low or null position created to attract foreign currency in exchange for tax benefits such as partial or total exemption to non residents.The creation of offshore companies is not recommended, since this is in some way a crime, even if it is not, since we evade taxes to the treasury and later on it could bring serious problems to the company.Each territory is independent of choosing its own economic rules This would lead to the first instance that tax havens are legal from any point of view. The main legal problem that these territories face is the handling of information because this is the greatest asset that organizations currently have,Non-disclosure and obstruction of the free flow of information makes tax havens under the eye of international organizations and is much more influential due to the fact that taxation is zero or low with respect to normal standards There are different places in the world that make use of tax haven strategies and have never been involved in any problem, all this depends on the strategic alliances that make up economic communities in order to evaluate the benefits or damages that would bring to a certain place classify it as tax havens, unlike highly conservative and largely state-dependent countries, which derive their tax revenues from income tax and other types of taxes, tax havens on the contrary,By not having income tax, they must subsist on the cost of financial transactions that arise within their jurisdictions, this form of collection makes work less complex and benefits both the tax haven in its financing and the owners of capital accumulations. Establishing such companies does not imply any irregularity and they are frequently used by those who have significant assets and wish not to attract attention, to avoid being victims of crimes such as extortion or kidnapping. It is advisable to establish them in countries with which there are reciprocal investment protection agreements and also to plan the distribution of assets among the heirs in the event of the owner's death. For those and other similar reasons,These people decide that their investments are registered in the name of foreign companies and not of their direct owners.Constituting offshore companies in our country does not imply any irregularity and is frequently used by those who have significant assets and wish not to draw attention to avoid being victims of extortion or kidnapping. Therefore, it is recommended to establish them in countries that have mutual investment protection agreements and also to plan the distribution of assets among the heirs in the event of the owner's death.For these reasons, people decide that their investments appear registered in the name of foreign companies and not of their direct owners. Offshore companies duly incorporated in their country of residence are fully legal legal entities, authorized by the corresponding authorities in the country in which they operate. Most of these countries are characterized by presenting tax advantages for their constituents or foreign shareholders. These actions are not illegal given that these countries have perfectly lawful internal policies. Therefore, participation in an offshore company is legal, but it is very important to establish the origin of the funds that they manage or with which they work with this type of company.authorized by the corresponding authorities in the country in which they operate, the vast majority of these countries being characterized by presenting tax advantages for their constituents or foreign shareholders. These actions are not illegal given that these countries have perfectly lawful internal policies. Therefore, participation in an offshore company is legal, but it is very important to establish the origin of the funds that they manage or with which they work with this type of company.authorized by the corresponding authorities in the country in which they operate, the vast majority of these countries being characterized by presenting tax advantages for their constituents or foreign shareholders. These actions are not illegal given that these countries have perfectly lawful internal policies. Therefore, participation in an offshore company is legal, but it is very important to establish the origin of the funds that they manage or with which they work with this type of company.Participation in an offshore company is legal, but it is very important to establish the origin of the funds that they manage or with which they work with this type of companyParticipation in an offshore company is legal, but it is very important to establish the origin of the funds that they manage or with which they work with this type of company
BIBLIOGRAPHY
- http://www.elobservador.com.uy/claves–entender–el–caso–panama papers – n891445 http://rpp.pe/mundo/actualidad/panama–papers–todo–lo–que–debes–saber del –Scandal – world – news – 950670 https://elcomercio.pe/economia/mundo/paraisos-fiscales-sectores-region-395733http: //www.paraisos–info/blog/92_sociedades–offshore
