How Offshore Tax Wealth Havens Came About A Guide For Your Financial
Wealth Planning

How Offshore Tax Wealth Havens Came About A Guide For Your Financial Wealth Planning

How Offshore Tax Wealth Havens Came About .​
a​ Guide for Your Financial Wealth Planning
It is​ important to​ keep in​ mind that offshore financial centers were originally established by onshore banks and corporations .​
Why? Because felt hemmed-in by archaic laws,​ regulations and statutes .​
For example,​ Citicorp (the largest American-owned bank in​ the​ United States) was one of​ the​ first to​ set-up offshore operations .​
It wasn't too long before 64 percent of​ its net income was being generated by offshore sources.
Some of​ the​ pioneering centers have evolved into world-class financial and economic headquarters .​
Since the​ early 1970s,​ these centers have initiated policies deliberately designed to​ attract international trade by minimizing tax obligations and reducing (or entirely eliminating) other restrictions on​ business operations .​
The result is​ that economic activity within these centers is​ specifically geared to​ the​ special global needs of​ outside businesses and investors.
Typically,​ these centers are small states with tiny populations .​
To date more than 75 of​ these tax havens exist throughout the​ world .​
Each one of​ them is​ a​ unique offshore haven of​ sorts deliberately intended to​ attract very particular investors with very specific needs.
For example,​ a​ center like Aruba was set up primarily for economic development .​
Formerly dependent on​ oil refineries for its revenue,​ it​ has now implemented an​ investment policy that gives it​ entree to​ the​ global economic system .​
Becoming an​ offshore money haven was the​ answer .​
By renting its laws regarding taxation,​ incorporation and other related legal matters,​ Aruba has begu​n a​ much needed process of​ economic development and diversification.
Singapore,​ on​ the​ other hand,​ was designed to​ serve the​ Asian dollar market .​
Today it's one of​ the​ most prosperous money havens in​ the​ world on​ a​ per capita basis .​
And Bahrain was developed to​ process the​ Middle East's offshore financial needs,​ especially Saudi Arabia's.
All these offshore havens were made possible by the​ electronic revolution in​ fund transfer mechanisms which occurred early on​ in​ the​ 1970s .​
That single technological development made it​ suddenly possible and affordable to​ establish banks,​ corporations and holding companies in​ relatively remote locations .​
It also made inter and intra time-zone business a​ viable alternative to​ home-based operations .​
In turn,​ this gave rise to​ the​ creation of​ international wholesale banking — where large deposits could be maintained in​ a​ variety of​ currencies,​ transferred via a​ worldwide network of​ corporations,​ banks,​ governments and individuals,​ and lent to​ interested borrowers .​
This,​ in​ turn,​ led to​ new transnational business practices and the​ development of​ the​ international subcontracting of​ loans and other financial transactions.
Basically,​ international havens have become an​ established part of​ the​ international intermediate economy .​
They stand as​ brokers of​ a​ sort for global business and finance .​
It's important to​ keep in​ mind that all of​ this was initiated by large banks,​ corporations and even government agencies from around the​ world .​
Keep in​ mind that every government from the​ Soviet Union to​ Japan,​ China and the​ United States needs to​ obtain money on​ the​ international market .​
They,​ too,​ use money havens as​ convenient transaction points .​
The Bahamas became one of​ the​ biggest offshore havens because it​ serves the​ purposes of​ various government entities from finance ministries to​ intelligence agencies.
Offshore havens are,​ today,​ an​ accepted financial fact .​
Even more important,​ they are seen as​ legitimate vehicles through which individual investors can take advantage of​ the​ offshore option .​
If is​ simply a​ matter of​ applying the​ basic financial principles of​ profit,​ tax protection and privacy .​
They were developed over the​ centuries by Florentine merchants,​ royal treasurers and brilliant bankers .​
The mechanisms and strategies change continuously,​ but the​ goals always remain the​ same.

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