Why Use Offshore Companies To Save Money? August 30, 2008
Posted by janey in : taxation , comments closedThe most vital point for you to remember about benefiting from offshore low tax centres is that the control and management of the tax generating entity (be it a Company, a Trust or a Foundation) itself should be in the low or zero-tax jurisdiction. There are many CSP companies that can provide this service. Many big companies use offshore structures to maximise their profits whilst ensuring their prices are rock bottom for the end consumer. In the UK a number of supermarket stores have been frowned upon and heavily criticised for their methods of tax effective savings – completely ignoring the fact that they supply their goods at affordable costs for shoppers as well as providing employment within the country of sales.
Several jurisdictions considered to be “high-tax” including the United Kingdom and Germany have tried to attract headquarters’ offices and functions using an idea called the ‘coordination centre’. What was originally used in Belgium is now seen in many countries throughout the world. Essentially, the high tax country will allow a resident corporation to continue its functions outside the normal tax laws. It is then able to use functions such as cross border intra-group trading or “re-invoicing” to escape any withholding tax or other taxes. The taxation of coordination centres is ‘by agreement’ between the corporation and the host country and is widely minimal. This is just one of the ways in which high-tax jurisdictions, which are against low-tax areas, play the same game themselves.
Who Else Benefits From Offshore Zero Tax Jurisdictions?
I bet you didn’t know that some of the most famous names in entertainment, music and film have benefited greatly from the use of offshore Companies and Trusts? Many of our well known celebrities take advantage of offshore structures to reduce their tax and protect their assets. For example, the Rolling Stones (Mick Jagger, Keith Richards and Charlie Watts) use offshore Trusts to ensure they pay only 1.6 percent of all income earned, that’s amazing! They keep 98.4 percent of all their income! (This is according to the Dutch documents that were recently published detailing their tax affairs and the offshore structures involved). It’s brilliant news for them, but it’s not only the ultra rich & famous that can utilise offshore structures to save tax. There are many opportunities for up-and-coming businesses or moderately wealthy individuals to minimise their tax requirements and legally protect their assets from litigation or economic instability.
Whilst you may never be able to reduce your tax bill down as low as the Rolling Stones 1.6 per cent (unless of course you decide to become a tax nomad and exile yourself from your home country) it is entirely possible for normal people like you and I to have an offshore Company or Trust within a financial management strategy to reduce taxes, protect your estate and protect your assets in a confidential yet legal way.
Not Using Your Yacht Much? Why Not Consider Donating Your Vessel? August 13, 2008
Posted by janey in : taxation , comments closedYou don’t have to be rich to receive substantial benefits from boat donation to a marine charity.
Contrary to general belief, donating your vessel does not mean “giving it away” without any benefits to you. In fact, many boat owners are finding that they can net more bottom line dollars from a boat donation than they can in an outright sale.
This is a very real possibility because you receive a tax deduction up to the market value of your vessel depending on the intended use by the non-profit organization plus your marine expenses end immediately – not in six months or a year while you’re waiting for a sale.
With high fuel prices and difficult economic times, any vessel broker will tell you that boats are taking much longer to sell these days, and you’re stuck with paying for moorage and maintenance costs until a sale is final.
In a boat donation, the transaction can be completed in a matter of days, there are no broker commissions to pay, and your expenses are eliminated immediately.
You’ll want to consult your accountant on how this applies to your individual situation, but you can deduct up to 100 percent of the appraised value of your yacht, depending on your tax situation and the intended use by the nonprofit group.
You can then apply this savings on up to 50 percent of your adjusted gross income annually, and any remaining balance not immediately deducted can be carried forward for the next five years.
That’s important to note: you can deduct the value of your boat donation for up to five years forward. It doesn’t matter if you can use the deduction now – if you expect to have a significant taxable income anytime in the next five years, a tax-deductible vessel donation could come in handy.
When you add up the tax deductible value of your yacht donation plus all of the money you save by not having to pay any more boat expenses during a protracted sales effort, you could end up with more money than you would in an outright sale.
By donating your boat to Pacific Marine Foundation, your ongoing expenses of ownership, such as moorage, maintenance and fuel, terminate immediately, and there are no more headaches with showing your boat to bargain hunters and “fender kickers”.
Pacific Marine Foundation has quickly become a leader in the field of boat donations precisely because of its expertise in understanding and managing the complexities of marine donation. Our paid and volunteer staff includes attorneys, yacht brokers, marine equipment specialists, licensed commercial captains and industry experts with more than 30 years in the business.
When you decide to donate your boat to the Pacific Marine Foundation, you can be assured that your gift will be handled promptly, professionally, with legal integrity and with personal care. We have the proven experience.
A tax-deductible vessel donation to Pacific Marine Foundation offers you significant advantages. While your gift gives you the benefit of an immediate tax savings at 100 percent of appraised value, it also creates tangible benefits for our recipient organizations.
While you might not have a high taxable income now, but if you expect to have a high income — and high tax bill — in the next five years, you might be a good candidate for donating your boat! Naturally, you would want to consult your tax adviser.
A gift to Pacific Marine Foundation is a legitimate alternative to what may otherwise be a disappointing return on sale, and you’ll be making a contribution that helps support our youth programs.
Contact Us for a no-obligation consultation at 1-888-GIFT-BOAT (888-443-8262) or visit our web site at PacificMarine.org.
