Volume 8, Issue 3, September 2014, Pages 947–957
Ana-Maria Geamãnu1
1 Accounting Doctoral School, The Bucharest University of Economic Studies, Tache Ionescu Street no.11, floor 1, room 8102, Bucharest, Romania
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
A number of Overseas Countries and Territories (OCTs) having links to EU Member States were listed in 2000 under the tax haven headline by the Organization for Economic Cooperation and Development (OECD). A series of measures had been taken in order for them to adopt the OECD`s internationally agreed tax standard and to become compliant to the EU`s Code of Conduct for business taxation. At the same time a number of both fiscal and corporate advantages make these territories attract significant business activity. The aim of this article is to present a comparative analysis of two types of offshore companies: the international business company (IBC) and the exempt company, offered by six OCTs having links to the United Kingdom: Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Montserrat, Turks and Caicos Islands. These companies are being analyzed in terms of characteristics, administration and Governmental fees for incorporation and continuation. Although the international business company (IBC) is seen as the emblem of the offshore sector, the results of the comparative analysis performed have shown that the exempt company is similar to the IBC structure in many respects. The lack of taxation of the revenues generated outside the territory of incorporation, the lax company administration conditions and the low Governmental fees are common features of these two corporate structures which are part of the offshore sectors of these territories.
Author Keywords: Tax haven, OECD, Overseas territory, International Business Company, Exempt Company.
Ana-Maria Geamãnu1
1 Accounting Doctoral School, The Bucharest University of Economic Studies, Tache Ionescu Street no.11, floor 1, room 8102, Bucharest, Romania
Original language: English
Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Abstract
A number of Overseas Countries and Territories (OCTs) having links to EU Member States were listed in 2000 under the tax haven headline by the Organization for Economic Cooperation and Development (OECD). A series of measures had been taken in order for them to adopt the OECD`s internationally agreed tax standard and to become compliant to the EU`s Code of Conduct for business taxation. At the same time a number of both fiscal and corporate advantages make these territories attract significant business activity. The aim of this article is to present a comparative analysis of two types of offshore companies: the international business company (IBC) and the exempt company, offered by six OCTs having links to the United Kingdom: Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Montserrat, Turks and Caicos Islands. These companies are being analyzed in terms of characteristics, administration and Governmental fees for incorporation and continuation. Although the international business company (IBC) is seen as the emblem of the offshore sector, the results of the comparative analysis performed have shown that the exempt company is similar to the IBC structure in many respects. The lack of taxation of the revenues generated outside the territory of incorporation, the lax company administration conditions and the low Governmental fees are common features of these two corporate structures which are part of the offshore sectors of these territories.
Author Keywords: Tax haven, OECD, Overseas territory, International Business Company, Exempt Company.
How to Cite this Article
Ana-Maria Geamãnu, “Comparative analysis of offshore companies based on characteristics, administration and costs,” International Journal of Innovation and Applied Studies, vol. 8, no. 3, pp. 947–957, September 2014.
