lakeletter3 copy.GIF (12710 bytes) 
WelcomePresident's MessageOur MissionOffshore InvestingTax HavensChoosing a Tax HavenTax Haven CountriesOur ServicesFor Example . . . Contact Us

 

For Example . . .

 

Following are some examples of how various offshore vehicles can be utilized. The names are fictitious and the examples are not based on any of our company's clients specific circumstances.

brbutton-1.gif (980 bytes)    Individual (Privacy)

Miss Smith wants to have some privacy with respect to her banking and credit card functions. She is tired of having to give out personal information to financial institutions and government agencies.

Miss Smith could have an offshore bank account along with an offshore Visa card. Certain personal information may have to be supplied by Miss Smith, however, no bank or Visa statements need to be supplied unless she so desires.

brbutton-1.gif (980 bytes)     Individual (Asset Protection)

Mr. Jones is a doctor and he has built up substantial personal assets. He has liability and error and omission insurance but he is concerned that if he is sued and the insurance does not cover the damages awarded, his personal assets may be at risk.

Mr. Jones could have the title to his assets transferred to an offshore International Business Corporation incorporated in a country who's laws do not recognized foreign judgments, thereby protecting his assets. There may or may not be some tax consequences in doing this.

brbutton-1.gif (980 bytes)    Individual (Estate Planning)

Mr. and Mrs. Brown have some assets that they want to pass on to their children upon their death and are concerned about the possibility of new laws being enacted whereby gifts and inheritances would be taxable.

Mr. and Mrs. Brown could invest in an offshore charitable foundation structure that could see their investment and interest on that investment being forwarded to their children via legitimate non-taxable means.

brbutton-1.gif (980 bytes)    Individuals (Tax Strategies)

Mr. and Mrs. Jacobs, like so many Canadians, do not mind paying some income tax, however, they are tired of working at their business to make money only to give 50% away to the government, which seems to have poor judgment when it comes to expenditures. Is there anything they can do?

Yes, there is. In spite of the new reporting requirements enacted in 1997, the Jacobs may be able to utilize an offshore charitable foundation structure to reduce the amount of tax they will pay. To elaborate on this structure is beyond the scope of this website, however, a Lakeway representative would be pleased to discuss this with you.

brbutton-1.gif (980 bytes)    Individuals (Asset Protection - Divorce)

Miss Johnson is engaged to be married shortly, and although she loves her fiancé very much, she realizes that statistics show that one out of every two marriages ends in divorce. She is concerned that she may lose a good portion, if not all, of the assets she will bring into the marriage. What can she do?

Miss Johnson could have the title to her assets held by an offshore International Business Corporation (holding company) in a country whose laws do not recognize foreign judgments. She would then be judgment-proof, thus protecting her assets.

brbutton-1.gif (980 bytes)    Corporations (Asset Protection)

ABC Corporation, a Canadian controlled private corporation, is thinking of buying some assets, such as an office building and land. Its major shareholder is concerned that in the event the company is sued and its insurance does not cover the damages awarded, the company's assets will be at risk.

ABC Corporation may be wise to utilize an International Business Corporation to hold title to their assets, and lease them to ABC Corporation. In the event that the Canadian company is sued, loses and its insurance does not cover the damages awarded, the Company's assets are protected because title is held by an IBC in a country that does not recognize foreign judgments.

brbutton-1.gif (980 bytes)    Corporations (Transfer Pricing)

Widget Manufacturing and Sales Ltd., a Canadian Corporation in its startup stage, wants to set up a manufacturing plant separate from its Head Office. It is looking at its options, and considering the income tax consequences of each option.

The Company may be well advised to have its manufacturing plant in a no-tax haven country. The person or persons controlling and managing the plant would be non-residents of Canada. The offshore company could then sell its products to its Canadian Head Office thereby trapping some, of not all, of the profits in the no-tax haven country. The pricing of  its products and the mind and management of the manufacturing plant are key factors in this structure.

 

WARNING

The above examples are to show some basic structures that can take advantage of several offshore vehicles. They require proper documentation and organization. We do not advise that you attempt to organize these structures on your own.

 

Back to Top


Lakeway International Equities Ltd.
Copyright © 1997 All rights reserved.
Revised: February 19, 2002