Is it your dream to one day have enough money squirreled away so that you can retire to the sun?

Oh that dream is so passé!

What if you could: -

• move to the sun today


• take your business with you


• and reduce your tax liability drastically at the same time?

Sounds like a fantasy?

Tax Consultants Guide can show you how to begin turning that fantasy into a reality.

The Internet, eBusiness & Offshore

We all know that the internet has allowed businesses to open up their product range and service capability to the global consumer. You’ve probably heard of this concept referred to as trading in the global market place.

Well, in many cases, especially in the case of eBusiness* and eCommerce* the internet has also meant that the actual trading a company does can take place in any geographical location – including low taxation liability offshore locations!

Maybe the thought of going ‘e’ with your business or establishing a whole new eBusiness concept is daunting enough without adding the offshore element right at the start?

Well, actually the ‘offshore’ bit should be your first serious consideration! Can you afford to ignore the taxation savings that you could be making both personally and for your business if you were to move offshore?

What does Offshore mean in this context?

The easiest way to establish your business offshore is to make sure it qualifies on each of the following points: -

• A new company is set up offshore for the eBusiness trading side of things – this is to avoid such complicated fish as capital gains liabilities incurred by moving a business of certain value out of a high-tax country’s tax jurisdiction. Sort of a penalty for escaping!


• The servers your company run from are physically located offshore – physically located is the key here; just administered from offshore but located onshore is simply not good enough!


• The owners of the company are based offshore – otherwise Controlled Foreign Corporation laws could be violated and taxation avoidance issues raised.

Of course there are specialists out there who can advise you on all aspects of establishing your eBusiness’ offshore tax saving status, and there are certain ways that at least the last point in the above list can be worked with. Tax Consultants Guide aims to make you aware of the generic possibilities available to you and always recommends that you seek qualified professional advice.

So who can benefit?

Many people today are in a position to move all or parts of their current business offshore, or to start a new business offshore.

Those in the best position are people who produce digital or non-tangible products. These are products that can be sourced by a consumer over the internet and downloaded. Are you

• A Software House – do you produce and sell applications, PC tools, games, music etc.,


• An Information Provider – selling information, eBooks etc.,


• A Service Provider – offering internet advertising, online directories, search engine optimisation or even website hosting?

You can benefit!

If you have a more ‘traditional’ business model consider: -

• which parts of your business have to remain onshore – client liaison?


• which parts can be outsourced – physical delivery of goods?


• how much you can actually take offshore with you.

Seek advice to determine how much of your business you can actually pack up and move to the sun!

Location, Location, Location

The offshore location considerations are of course limited and dictated by the taxation, legal, sunshine and personal preference side of things!

But don’t forget to take into account the state of the technical infrastructure of your chosen offshore destination as well!

You’re going to need state of the art reliable telecommunication capabilities if your eBusiness is to remain ‘e’, online, accessible and viable.

You’re going to have to have a dependable electricity supply.

You’re going to need good local technical expertise to set up and maintain your servers and IT infrastructure.

So the infrastructure and technical restrictions rule out the desert island then – so where IS viable?

• Bahamas


• Barbados


• Cyprus


• Jersey


• Malta


• Monaco ?

And they are just the sunniest places I could find!

There are plenty of options available to you both in terms of location and in terms of moving your business offshore. If this is a concept that you would seriously like to explore, Tax Consultants Guide recommends that you choose a range of advisers wide enough to cover every aspect of the planning process. These are likely to include: -

• International taxation specialists (possibly with VAT expertise)


• Relocation specialists with specialist local knowledge in your destination of choice


• Business planners for the business restructuring or eBusiness establishment


• International lawyers


• Translation services


• IT services

The Truth

The truth is, your Tax Consultants Guide team aim to show you ways to legally minimise your taxes and maximise your investments. The truth is there is a solution available to you which could allow you to sell up your house, pack up your business, move to the sun, run a highly profitable eBusiness and cut your taxation liability down to size!

Live your dreams AND afford to pay for them!

(*eBusiness is business to business and *eCommerce is business to public)

Tax Consultants Guide 2004

The tax and financial consultants guide

The material provided by Tax Consultants Guide is for general information only and does not constitute investment, tax, legal or other forms of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.