Some characteristics of offshore operations

Abstract

Offshore operations are not on the margins of the world economy. They are an integral part of modern business practice. They have become one of the most important instruments in the contemporary globalized financial system. Offshore operations and tax havens are not only conduits for tax avoidance and evasion but belong more broadly to the world of finance, for the business of managing the monetary resources of an organization, country or individuals. Offshore business operating in tax havens is at the heart of a particular type of globalization that is characterized by a growing gap between the very rich and everyone else. Tax havens are financial conduits that, in exchange for a fee, use their one principal asset- their sovereignty to serve a nonresident constituency of accountants and lawyers, bankers and financiers, who bring a demand for offshore operations.

Keywords

• offshore
• offshore financial centres
• offshore companies
• offshore trusts
• onshore
• tax havens
• tax planning
• neoliberal globalization